NEWTOWN TOWNSHIP, PA — Taxes are projected to increase by 2.6 mills under a recommended 2027 budget presented by the township manager Wednesday night.
The proposed spending plan is projecting a 2.635 mill increase, which equates to $103.39 more per year in municipal taxes for the average assessed residential unit.
The millage increase would boost the township's total millage from 17.115 to 19.5 mills next year.
Driving the increase is a three-mill increase in spending for fire protection and capital purchases, which is offset by a .6 mill decrease in the township's debt service.
The 3-mill increase would bring millage for fire protection up to 10 mills, the maximum allowed under state law.
Township manager Micah Lewis presented the first glimpse at next year's budget during Wednesday night's meeting of the board of supervisors.
Lewis said local enabling taxes continue to be the predominant source of revenue for the township, which is projected to bring in $8.6 million in 2027.
Total revenues are budgeted at $19.1 million for 2027, including a projected fund balance of $5.1 million.
The spending plan is contemplating the hiring of a full-time zoning and code enforcement director next year with the assistant manager continuing to oversee the finance department in the absence of a finance director.
On the expense side of the ledger, Lewis said salaries and benefits have been budgeted under their contractual obligations. The general fund, he said, continues to maintain a $350,000 line item for highway construction and budgets a 10 percent across-the-board increase for insurance costs.
A tax increase is not proposed for the general fund, which pays for most of the township's operations, including personnel, materials and insurance. However, Lewis said to offset the trend in deficit spending, the general fund will need to be addressed in the future as additional resources become necessary when the fund balance is depleted.
In other township expenditures, the 2027 budget allocates two mills for the rescue squad, proposes a slight increase in its fire hydrant fund from .615 to .815 mills to offset the increased cost of maintenance, and budgets a .67 decrease in its debt service costs.
Under capital purchases, the spending plan sets aside $736,730 for the following purchases:
Under Parks and Recreation, the budget allocates $100,000 to develop a master plan for Helen Randal Park and $300,000 to replace aging play equipment at Robert's Ridge Park.
The budget also allocates $850,000 for the township's 2026 road program. The base bid proposed for 2027 includes several roads in Durham Lea, including Bedford Lane (entire length), Hampton Circle (entire length), Brighton Place (entire length), and Chatham Place (entire length); base repairs on portions of Twining Bridge Road; and a full mill and overlay of Linton Hill Road (Frost Lane to Route 532) and Wrights Road (Eagle Road to the culvert).
The budget is tentatively scheduled for advertisement on Oct. 28 or Nov. 10, with adoption scheduled in December. Once the budget is advertised, the spending plan will be available for public review.
After listening to the budget presentation, Supervisor Phil Calabro advocated using the township's $5.1 million fund balance to offset the proposed tax increase and keep the millage rate the same as this year.
"That would be a board decision," said Lewis, adding that a depletion of the general fund "is not what we're (the administration) recommending."
Calabro responded, "You used the word deplete. I use the word using the people's money to pay down millage. That, in essence, is the people's money that we're carrying."
Calabro reasoned that the $700,000 taken from the general fund "would probably be replenished during the course of the year as we go on. I'm looking at keeping the millage rate the same as last year while using the money we have in our general fund to alleviate whatever taxes we have to impose on the public."
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