Greenville school directors approved a preliminary 2002-03 budget Monday that calls for a 1-mill tax increase.

What the 1-mill -- or 2-percent -- tax hike means to the average property owner in the district's three municipalities, according to Director and Budget Committee Chairman Barry Oman: $15.42 more in taxes in Greenville, $19.40 more in Sugar Grove Township and $25.19 more in Hempfield Township.

The district's taxes are currently the third highest in the county, behind Sharpsville and West Middlesex schools. Greenville's $14,060,864 spending plan for the coming fiscal year would be supported by 48 1/3 mills in taxes.

Taxes are being levied under a new assessment ration adopted last year by county commissioners. Previously, taxes were levied at one-third of a property's 1970 market value. Under the new ratio, taxes are levied at 100 percent of the 1970 market value. In other words, the current 142 mills translates to 47 1/3 new mills; the 1-mill hike would have been 3 mills under the old ratio.

A mill is $1 for every $1,000 of assessed property value. At 48 1/3 mills, a home assessed at $15,000 carries a tax bill of $725 -- compared to $710 this year

Each mill generates about $94,000 for the district.

The board is proposing eliminating three teaching positions, across-the-board spending cuts and using more than $400,000 from its general fund to soften the tax burden. The proposed spending plan is 3 percent smaller than this year's.

Eight teachers are retiring this year, but the district will not fill two elementary teaching positions and one in special education, said Superintendent Dr. Patricia M. Homer.

The board also refinanced the bond it used for recent school renovations, extending its life by two years to reduce debt payments; for the first time in six years, the district is not calling for additional taxes to pay down the bond.

The board had to wrangle with "a $250,000 increase in health insurance, much lower interest rates on our deposits, only a 1-percent increase in the state subsidy and other factors that all seem to be coming together in one year as if it were the 'perfect storm,' " Oman said.

The biggest project planned for the coming year is roof repairs at Hempfield Elementary School, estimated to cost $80,000. "It's crucial to maintain the investment that we have in our facilities, not only to protect our educational system but also to help maintain and/or increase the real estate value of all the homes in the community" Oman said.

The board is expected to approve a final budget next month.