Newtown Borough Budget Calls For 2 Mill Tax Increase For Fire Services

NEWTOWN BOROUGH, PA — Newtown Borough property owners will see a two mill tax increase in 2025 under a preliminary budget advertised for adoption in December by the borough council.

The budget, which is available for review at the Newtown Borough Hall and online, includes a two mill tax increase that will boost the fire tax millage from 2.125 to 4.125 mills.

The millage increase will raise about $189,000 toward its $275,000 obligation to Newtown Township to pay for fire protection. The $89,000 shortfall will be funded through the budget’s operating reserve.

The increase is largely due to the rising cost of fire services as a dwindling volunteer fire brigade is replaced by paid firefighters.

According to the budget, to fully fund the existing fire services agreement the 2025 Fire Fund millage would need to increase to 6.325 mills.

"Raising the millage and/or an alternative way of funding fire services is a priority for Borough Council in 2025," says the budget. "In addition to alternative funding options, the Borough should also explore alternative services providers and/or alternative models of contracting for services."

Other key revenue streams, including building permit fees, real estate transfer taxes, and the Earned Income Tax, are projected to remain largely the same as this year. Additionally, the collection of fees, fines, licensing, and various intergovernmental revenues are expected to remain flat.

The borough also collects an Earned Income Tax (EIT) and a Local Serves Tax (LST) to fund its budget. Because it is a percentage of income, the Earned Income Tax increases as salaries and wages increase over time. The Borough EIT levy is 1.0 percent of wages and the LST is a one dollar per week levy on all employees whose home-base of employment is within the Borough.

On the expense side of the budget, the police department continues to be the largest expense in the General Fund catagory.

According to the 2025 budget, the police budget reflects an increase of approximately 7.2 percent over 2024 budgeted expenses.

The projected 2024 police department expense exceeds the 2024 budgeted amount by approximately $95,000 (7 percent) largely due to the partially unbudgeted purchase of a new vehicle and staffing expense running slightly higher than budgeted.

The 2025 budget includes a three percent increase in wages, per bargaining unit contract. In 2025 the Borough will renegotiate its police labor contract set to expire on December 31.

The 2025 budget is based largely on the same operations and activities as prior years and includes continuation of the new hires made in 2024: the borough manager hired in May and one additional police officer hired in July. The borough staff consists of 9 full time employees, including seven officers and the police chief and the administration including the borough manager/treasurer and the borough secretary. There are no other full-time employees.

Accounting and Bookkeeping Services is budgeted for $40,000 to support one new part-time bookkeeping position to support accounting functions.

A brighter spot in the budget is in the area of debt service.

In 2017, the borough secured a loan to finance the conversion of its streetlights from sodium-vapor fixtures to energy-efficient LED fixtures. The loan was financially neutral as cost savings generated from the new LED streetlights (PECO electricity bills) offset the loan payments. This fall, the loan was fully repaid, leaving the borough free of any outstanding debt