Hempfield may double its property tax millage rate to support the expenses of its 10 fire departments.
It would be the first tax increase in more than three decades.
Township supervisors discussed a $17 million preliminary budget this week that included a 3-mill property tax. The tax levy has remained unchanged since 1990.
But Supervisor Tom Logan later proposed an additional 3-mill tax to keep up with rising fire department expenses without cutting the township’s road paving budget. This would bring property tax to 6 mills and increase the average tax bill to $163.
“I think we’ve done an excellent job over the years of being able to manage and stretch and squeeze all the inefficiencies out of government that’s possible to do,” he said, “but I don’t see how we move forward maintaining everything under the current 3-mill property tax structure.”
The $17 million, 3-mill budget would shave about $1 million off the township’s typical $2.5 million road paving allocation to account for increased fire department expenses and three new full-time staff positions — an assistant township manager, an additional parks maintenance worker and a Hempfield Township Athletic Complex facility manager.
Logan opposed the road paving budget cut.
“I am concerned that we have cut our paving budget in half, which when you go back 5 or 6 or 7 or 10 years, that means we’re only going to pave a quarter of what we used to,” Logan said. “And that will significantly deteriorate our road infrastructure fairly rapidly if we keep that process up.”
Logan recognized the need to increase fire department funding. The preliminary budget proposed Wednesday included $2.1 million for the township fire service.
“To date, we have invested several million dollars of our general fund within the fire and emergency services,” he said. “Part of our budget process that we do provides for a service in Unity Township.”
A 3-mill dedicated fire tax would raise township revenues to about $18.6 million.
Township supervisors will vote on two budgets at its Monday meeting — one with a 3-mill tax rate and the other with a 6-mill rate.
Expected revenues of the original $17 million budget include about $15.4 million from general government, nearly $543,00 from community development, nearly $583,000 from parks and recreation, $385,000 from public safety and $150,000 from public works.
Expected expenses include about $6.6 million from general government, $874,00 from community development, nearly $364,000 from finance, about $1.5 million from parks and recreation, about $2.2 million from public safety and about $5.5 million from public works.
The average assessed property value in the township is $27,266. Factoring in the township, school district and county taxes, residents pay about 122 mills. One mill brings the township about $530,000, said finance Director Lloyd Fait.
Rising retiree benefit costs also have placed a significant burden on the township, said township Manager Aaron Siko.
“The cost of doing business in all aspects of local government has gone up and what we’re seeing is the liquid fund account balances that are distributed by the state to local municipalities, those funds continue to drop,” Siko said. “We’re receiving less money, and ultimately, costs are going up, so we’re able to do less.”
Related:
• West Hempfield elementary school site could be home to new fire station
• Hempfield passes budget without raising taxes for 32nd consecutive year
• Hempfield supervisors delay vote to advertise part-time fire department driver position