A real estate rate tax increase of 0.3 mills, raising it to 1.59 mills, was approved at a special Franklin Park Council meeting on Dec. 4 as part of the 2025 budget.
This will help fund the expenses that were projected to exceed revenues, listed at $15,266,800 and $14,059,400, respectively, according to the budget document.
In 2024, the revenues in the general fund are listed at more than $11.5 million, and expenses at approximately $12.6 million. There was a $1 million surplus in 2023, as shown in the 2025 budget document.
“This decision hasn’t come lightly,” said Councilmember Thomas Schwartzmier. “We really struggled to come up with any other options without doing this.”
Schwartzmier highlighted ongoing expenses, such as funding federally mandated stormwater work, maintenance of aging infrastructure, park improvements, green space preservation and public safety.
“The borough looked really long and hard for any alternative to doing this. It was truly a struggle to get to the point to recommend this,” he said.
Uday Palled, council president, also said it was as hard decision.
“Nobody likes tax increases. At the same time, you can’t demand the high-level services that the borough provides at a bare-bone cost,” Palled said.
Jiang Li, council vice president, said that while it would seem that allowing more residential development could help with revenue, they’ve found it would cost the borough more money.
Only one resident offered comment at the meeting and was in support of the tax increase.
“I encourage council to make the brave and correct decision to properly fund Franklin Park,” said Sean Hyde of Scarlett Ridge Drive, commenting real estate values haven’t translated to an increase in revenue for the borough.
“I believe the only correct way to deal with the problem we have is to increase millage rates to increase revenue, revenue that is vital to Franklin Park,” Hyde said.
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.
This proposed increase would generate about $550,000 in annual income for Franklin Park.
Over the past year, the borough expected it would require budget transfers to balance the budget. Project delays and funding from the pandemic-era American Recovery Plan Act helped avoid some deficits.
The last time a tax increase was made to the general fund was in 2003. There was an increase in 2016 to help pay for a new fire station. That debt will be paid off in 2036.
Highlighted expenditure initiatives in the next year’s general fund include $485,800 for repairing and repaving 2.76 miles of road, a $385,100 contribution to Northland Public Library and nearly $300,000 for a flood control project on Montgomery Road, to be funded by a $214,500 state grant. There is $277,500 earmarked for stormwater maintenance and repairs.
Engineering costs to evaluate and design property on Magee Road is projected at $100,000. Consultant fees of $97,500, with almost $45,000 to be funded by a state grant, will be used toward updating the Park, Recreation and Open Space comprehensive plan.
Information technology upgrades would account for $65,000 of the general fund budget. And there’s a $57,000 contribution to the McCandless Franklin Park Ambulance Authority.
A fire protection fund, established in 2016, provides for financial support to the Franklin Park Volunteer Fire Department. Projects and programs in 2025 will require more than $1 million transfer from the borough’s general fund. Some of that includes renovations to the substation on Wexford-Bayne Road, replacement of a vehicle for the fire police, and nearly $300,000 in debt payments for the fire station built in 2017 on Rochester Road.
Projects in the capital reserve fund include $53,000 for a new police vehicle and $50,000 for replacement of police in-car and body cameras. A price tag of $215,000 is earmarked for a new dump truck, and about $200,500 for various park equipment replacements.
Costs of $1.4 million set for Municipal Separate Storm Sewer Systems upgrades will be funded by approximately $390,000 in grants and a low-interest loan of about $1 million.
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Other plans include upgrades and improvements at Acorn Park totaling $624,000, partly financed by a $577,000 grant, and a public works bucket truck will be replaced for $210,000, financed partly by a $100,000 grant
The Clover Hill Golf Course in Franklin Park continues to be economically self-sufficient.
The budget can be found online at www.franklinparkborough.us.