Residents of the Fox Chapel Area School District can expect a slight tax increase this fall.

School board directors proposed a $79 million budget for the 2008-09 school year, with a property tax rate of 20.3 mills -- up 3 percent from 19.71 mills.

That means the owner of a home assessed at $200,000 will pay $4,060, up from $3,942 last year. Residents will have the chance to raise questions or make comments during a public information session at 7 p.m. June 5.

The board will discuss the budget again on June 2 and June 9 during its regular meetings, and is expected to approve a final budget during the June 16 meeting.

Expenses for next school year will potentially increase about $2 million, or 3.22 percent.

Rising costs include health coverage for staff. Premium costs for medical insurance are projected to increase 6 percent; dental will rise by 2 percent and vision rates are expected to jump 35 percent, according to Bonnie Berzonski, district coordinator of communications.

The total increase for the combined dental and vision programs will cost the district an additional $21,000.

The budget included a $1 million transfer into the capital projects fund, which will be used for capital improvements.

The school district will maintain the contribution rate paid of 3.5 percent to the Public School Employees' Retirement System, as recommended by the state Department of Education.