The property tax rate in North Allegheny School District still will go down in the upcoming year even though the school board had to make room in its final 2008-09 budget for unprecedented natural gas and fuel prices.

On Wednesday, the board unanimously adopted a $114.86 million budget, which is nearly $164,000 more than the preliminary budget it approved last month.

By adjusting figures in numerous line items, the board kept retained the 0.35-mill decrease it had proposed in its first budget. The new tax rate is 18.99 mills with 1 mill generating about $3.8 million.

It is the second tax rate decrease in as many years for North Allegheny.

The 2007-08 tax decrease, combined with the tax cut for the upcoming year and a property tax reduction for qualified homeowners through gaming revenues under the Homestead Exemption, means owners of a home in the district with an assessed value of $200,000 will pay $304 less than they paid two years ago.

Mike Hopkins, district financial services manager, told the board the district will spend nearly $500,000 more in 2008-09 on natural gas and fuel than it did this year. The natural gas and fuel costs in the final budget are nearly $200,000 more than what was first presented in the preliminary budget.

The district will spend a majority of its money, though, on instructional costs, which include teacher salaries and benefits and student programs.

The budget also includes nearly $2 million for improvements throughout the district, including $1 million to replace the artificial turf at Newman Stadium and fix the surrounding track surface.

Depending on what other school districts do with their budgets, the new tax rate could earn North Allegheny a place among the five districts with the lowest millage rates in Allegheny County.

The district last reduced taxes in 2001-02 and 2002-03, and last increased taxes by 1.2 mills in June 2006.

In other business, the board approved an increase in lunch prices at all of its schools. Lunch prices were last raised three years ago.

Starting in the fall, elementary lunches will increase by 15 cents to $1.85, middle school lunches will rise by 25 cents to $2.15, and high school lunches will rise by 15 cents to $2.15.

The board also approved an $81,113 contract with Delaney & Associates to replace 470 lockers at the intermediate high school.

Of the 1,500 lockers at the school, nearly 1,000 need to be replaced, said Rob Gaertner, North Allegheny's facilities manager.

He said nearly half of those should be replaced by the time school starts in the fall.