Final Newtown Township Budget To Boost Taxes For Emergency Services

NEWTOWN TOWNSHIP, PA — The board of supervisors voted 4 to 1 on Dec. 7 to approve a
final budget for 2023 that includes a tax increase for the emergency services.

The 2023 spending plan will boost the tax rate by 1.625 mills, which equates to about $75 more a year on the average tax bill.

That includes a one mill increase for fire protection for operating expenses, recruitment and retention; a .5 mill increase for the rescue squad, which was approved by voter referendum in November; and a one eighth of a mill increase for debt service.

The original budget had called for a 2.625 mill increase, including two mills for the fire protection fund.

The board, at an earlier meeting, directed the administration to reduce the fire protection millage by one mill and instead dipped into its reserves to fund the increase by transferring $330,000 from the general fund to the fire protection fund. The increase will set money aside for the future purchase of a new engine.

The transfer resulted in a general fund balance of $1,324,806, which is 8.1 percent of expenditures.

“Nobody wants to raise taxes. I certainly don’t want to to raise taxes,” said Supervisor Elen Snyder. “But the fire services are hurting big time. I wish there was another way to do it but there’s not. We need that one mill for fire services. If there was another way around it I’d be all
for it. We can’t keep cutting fire services. Now is the time we need to do something or ease everybody in the township is going to be in big trouble when they want fire services at their house.”

Supervisor Kyle Davis cast the lone vote against the budget recommending instead using American Rescue Plan funding to cover the one mill increase in the fire protection fund and reducing the tax increase to just over .5 mills.

The township has about $1 million in ARPA funding, which hasn’t yet been allocated.

“Given the amount of funds we received from the federal government and what we have yet to spend I don’t think we should be raising taxes other than the .5 mill increase for the ambulance squad,” said Davis.

Other budget highlights include the addition of a full time police officer; capital purchases for all departments, including three police vehicles, a dump truck for public works, new crash investigation equipment and matching funds for a streetlight procurement study; an allocation for payroll outsourcing services; and salary increases for key personnel.

On the revenue side of the ledger, revenues are budgeted to increase slightly by 3.4 percent from $13,193,088 to $13,601,129, according to budget documents.

The budget anticipates a slight reduction in its real estate transfer tax revenue next year - budgeted at $700,000 - based on available inventory and rising interest rates, according to the budget.

Budgeted parks and recreation revenue have rebounded from the pandemic and are expected to reach $625,000 next year.

On the spending side of the budget, expenditures are expected to rise by 6.9 percent to $15,882,277, largely driven by personnel related costs, operational expenses driven up by inflation, and one time capital purchases, according to the budget document.

Salary increases for salaried and at will employees are budgeted at three percent in accordance with their contracts. Salaries for several key administrative personnel have also been adjusted to compete with neighboring jurisdictions, according to the budget.

The township currently has 72 full time employees and employs several part-time recording secretaries, crossing guards and personnel in the police department.

The budget contemplates the hiring of a new police officer and the reestablishment of the second lieutenant position in the police department next year.

The budget also includes a transfer of $400,000 from the general fund to the recreation capital fund, which historically has been funded by developer contributions but has been depleted in recent years. The fund includes expenditures for garage door upgrades at the Clark Nature Center, replacement of the yard hydrant system at Helen Randal Park, backstop repair at Chandler Field and grant matching funds for the Newtown Business Commons sidewalk construction project.

The budget also allocates money for road repaving projects, including $300,000 from the general fund and $530,000 from the highway aid fund.

The $800,000 is budgeted to pave 2.6 miles of roads, including Lower Dolington from Frost Lane to Silver Lake, Sequoia Drive from North Drive to North Drive, Redwood Lane, Ebony Court, Tamarack Court, Union Street and Canterbury Court.