UNION GROVE - Taxpayers in the Union Grove Elementary School District can look to add a nickel to every $1,000 of property value when calculating part of their school taxes for the coming year.

The School Board is projecting an increase in the tax rate from $7.45 per every $1,000 in property value to $7.50. Under that proposed increase, the owner of a home valued at $200,000 would pay $1,500 in elementary school taxes on tax bills that will be mailed in December.

The board will hold a public hearing on the proposed 2008-2009 all-fund budget of $10.7 million at 6 p.m. Tuesday in Room 134 at the school, 1745 Milldrum St. The hearing will be followed by the district's annual meeting at 6:30 p.m. Tuesday in the same location.

At the annual meeting, the School Board will consider setting the 2008-2009 property tax levy at $3.07 million. That is 6 percent, and $175,615 more than the levy of $2.99 million levied for last year's tax bill. The levy is the amount of property taxes the district believes it needs to cover budget projections not financed by other revenue sources.

Total school expenditures are projected to increase 10 percent for 2008-2009, from $9.47 million to $10.77 million. That includes $7.95 million for the general fund, which covers instructional costs and teacher salaries. Last year the district budgeted $7.21 million for the general fund, a difference of $733,777.

The elementary school district tax levy is separate from that set by the Union Grove High School Board.