Newtown Township Draft Budget Proposes 3 Mill Tax Increase In 2024

NEWTOWN TOWNSHIP, PA ? Township taxpayers will see a 3-mill increase in their municipal tax bills next year under the manager?s recommended budget for 2024.

In his annual budget presentation before the board of supervisors Wednesday night, manager Micah Lewis recommended a 2 mill increase in the township?s fire protection fund and a 1 mill increase in its debt service.

According to Lewis, the millage increase in the fire fund is needed to pay for a $250,000 contribution the township is making to the Newtown Fire Association for fire protection. The fund also anticipates a contribution by the township to the NFA's capital fund of $660,000 for future capital purchases, including a new fire truck to replace an aging engine.

The one-mill increase in the township?s debt service would pay for the conversion of the township?s public streetlights to more cost-efficient LED fixtures along with building lighting upgrades and the purchase and construction of a pedestrian warning beacon at a mid-block crosswalk on Newtown-Yardley Road at Tara Boulevard.

With the proposed tax increase, the township?s millage rate would rise to 13.115 mills, which equates to an annual municipal tax bill of $511.10 based on a house with an average assessment of $38,971.

With the increase, the township would still have one of the lowest municipal tax rates in the area, according to Lewis. For example, Northampton, which has a full-time paid fire department, has a millage rate of 21.61 mills. "We're a little over a half of what they are charging," he said.

That annual $511.10 bill gets the residents of the township "a pretty good bang for the buck," said Calabro, noting that it's funding police protection, fire protection, parks and recreation, and public works. Compare that to school revenue, which is more than $5,000 a year, he said.

Calabro also noted that by hiring additional police officers, "we are making the township safer."

Budget highlights for 2024 include the allocation of funds four new full-time firefighters, which are being paid for by a federal $1.5 million SAFER grant that the township was awarded in September, and for a new full-time police officer.

The four additional firefighters will bring the township?s complement up to 12 career firefighters, which will enable the township to provide paid fire protection during daylight hours seven days a week, according to Fire Chief Glenn Forsyth.

The transition to a paid staff is needed due to the dwindling number of volunteer firefighters, said Forsyth.

?We are not the only ones having a problem recruiting volunteers. Our county is in desperate shape for firefighters and it was necessary for us to figure out a way to provide fire service,? said Forsyth.

The new firefighters will be paid predominantly from the grant in 2014. After 2024, Lewis said salary increases, step advances and increases in costs and benefits will need to be supported by the general fund.

Following the expiration of the grant in three years, Lewis said the full salary and benefits of the firefighters will transfer to the general fund.

In 2024, budgeted general fund revenues are projected to increase from $13.6 million to $14.3 million, which includes $500,000 from the federal SAFER grant.

The estimated fund balance forward is $4.116 million at the end of 2023, said Lewis.

The Earned Income Tax will continue to be the predominant source of revenue in the budget.

The budgeted real estate transfer tax is projected to increase slightly in 2024 to $800,000 while budgeted Parks and Recreation revenue is expected to reach $665,000.

Budgeted expenditures are expected to rise to $16 million from $14.8 million in 2024. Expenditures are largely driven by personnel costs, operational expenses impacted by inflation and one-time capital purchases, said Lewis.

Salary increases are budgeted at three percent for at-will employees while exempt employees are budgeted in accordance with the township?s collective bargaining agreements.

The township currently has 73 employees. With five additional employees in the budget, the township will end 2024 with 78 employees.

Capital purchases funded under the budget include computer and technology upgrades, new police vehicles, a roof replacement project, the purchase of several mowers, and tire mounting and balancing equipment for public works.

The budget also allocates funds for tree removal at the Clark Nature Center, backstop repair at Helen Randle Park, and matching grant funds for a sidewalk project in the Newtown Business Commons.

Under the township?s 2024 road program, the budget allocates $755,000 from the highway aid fund, American Rescue Fund, and the General Fund for paving projects in 2024.

The draft budget is scheduled for preliminary adoption on Nov. 8 with final adoption on Dec. 6.