A proposed real estate rate tax increase of 0.3 mills in Franklin Park for 2025 will be voted on at a special meeting at 7 p.m. Dec. 4 at the municipal building on West Ingomar Road.
Borough council will consider the increase with the adoption of the 2025 Budget. The current rate is 1.29 mills.
Currently, a real estate property assessed at $100,000 pays $129 per year in real estate taxes to Franklin Park. A property assessed at $200,000 pays $258 annually, and a $300,000 property pays $387. Under the proposed increase, a property assessed at $300,000 would have an approximate $90 increase in property taxes, for a total annual cost of $477, according to information presented at a Nov. 20 meeting.
The proposed increase would generate about $550,000 in annual income for Franklin Park.
Since Allegheny County has not updated the assessed value of real estate since 2012, many Franklin Park property owners have not seen an increase in their local real estate tax. At the same time, most properties in the borough have significantly appreciated, per the borough discussion.
There was a 2016 increase for the fire company debt to pay for the new station. The debt will be paid off in 2036. The last rate increase to the general fund operations was in 2003.
Franklin Park currently has the fourth lowest real estate tax rate in Allegheny County, according to the borough.
The proposed 2025 budget is projecting a deficit to exceed $1 million.
Borough staff details that along with an increasing cost of services and goods — such as tires, salts and gasoline — public works and public safety continue to have increased expenses.
Also, the costs of federally mandated programs and aging infrastructure have continued to climb. The anticipated annual cost to repair and replace failing stormwater pipes, catch basins and detention facilities will cost $500,000 to $800,000 per year, according to a recent study by the borough’s stormwater engineer.
In an effort to preserve green space, a top desire by residents when making the 2023 comprehensive plan, Franklin Park has acquired more than 66 acres over the past several years for preservation, but that came at a cost and removed those properties from the tax rolls.
Grants, delaying capital improvement projects and drawing on reserve funds have been some cost-saving measures employed by the borough over the years. Any cuts in the budget to make up for the projected $1 million deficit would greatly affect services and operations in Franklin Park, per the borough discussion.
If current trends and spending continue as is, Franklin Park would be in financial distress within two to three years, according to the borough discussion.
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