NORTH WHITEHALL TWP., Pa. — North Whitehall residents can expect a tax hike next year as the township government looks to cover shortfalls from inflation, rising costs and new needs for their fire department.
A 0.45-of-a-mill fire tax and a 0.15-of-a-mill general property tax increase is proposed for the township in the 2025 municipal budget, which was advertised Monday at the township Board of Supervisors meeting.
"I will say, in 17, 18, years of local government, this is probably one of the hardest budgets we've worked on for a number of reasons."North Whitehall Township Manager Randy Cope
Municipal officials argue that current tax revenue, which comes in at $780,000, only has about an 85% purchasing power of the tax levy of in 2011, when the last township property tax increase occurred.
Township Finance Director Seth O'Neill said the tax increase would take North Whitehall back to where it was in terms of ability to invest in the township that it had at the time of that last increase.
"We are not able to buy what we used to be able to buy with this [current] tax rate," O'Neill said.
Officials specifically cited an increase from the township's health insurance provider, debt service for the municipal offices renovation, rising costs and the ending of American Rescue Plan Act funding.
Also noted were hires in public works, the hiring of a finance director and zoning officer, and the continued growth of the township.
"I will say, in 17, 18, years of local government, this is probably one of the hardest budgets we've worked on for a number of reasons," Township Manager Randy Cope said.
Property owners would pay $140 more
The total general property tax in 2025 would be 0.65 mills, which with the fire tax and farmland preservation tax bringing the total property tax to 1.2 mills.
That's an increase of more than 100% from the prior 0.5 mill general property tax and 0.1 mil farmland preservation tax.
For a median-value household assessed at $236,000, that would mean a tax increase of about $140 per year.
"We've come to the realization that if we don't bring ourselves up now, it only gets worse, and if underinvestment continues, five years from now, we'll be in a deeper hole and a bigger pickle of not being able to support things."North Whitehall Township Planning Commission member Brian Horwith
O'Neill said the township's property tax levy is in line with or less than other similar townships around it, such as Weisenberg, Lower Milford and Lowhill, and less than neighbor South Whitehall, which sits at 2.85 mills.
The township also has a 1% earned income tax, from which revenue is split between the Parkland School District and the township, 0.1 mill farmland preservation tax, and a $52 annual local services tax.
"I think we've under invested," planning commission member Brian Horwith said in public comment.
"We've come to the realization that if we don't bring ourselves up now, it only gets worse, and if underinvestment continues, five years from now, we'll be in a deeper hole and a bigger pickle of not being able to support things."
Supervisors also approved advertising an ordinance that would codify the street light assessment, which currently sits at $45 a year for residential properties within 250 feet of a street light.
According to the budget presentation, it is anticipated to increase township general fund revenue $250,000 and allow the hiring of a township planner and contribute a higher total to the township capital investment funds.
A general fund surplus of $280,000 is budgeted, which O'Neill says would be devoted to the equipment fund for needed future fleet acquisitions.
Most of the general fund, 60%, is earmarked for wages, payroll taxes, benefits and insurance.
The budget is set to be adopted at the supervisors' Nov. 4 meeting.
Fire department costs
The fire tax is anticipated to raise about $712,000 in its first year of implementation, $83,000 of which will be dedicated to the emergency services capital fund, in addition to $104,000 in Local Services Tax which township officials say is the existing funding source for public safety capital acquisitions.
Officials cited a Lehigh County mandate for communications system updates by fire departments.
Fire department officials at the meeting said the new tax is needed because the updates are a costly endeavor for them as the county transitions to a modern digital system, as is the future need for new fire trucks.
Other municipalities such as Upper Milford Township also have had to wrestle with how to fund their fire departments as they encounter volunteerism declines and donation shortfalls.
Many municipalities decided to implement fire taxes of some form.
Neffs Fire Company chief Jim Steward said only about 1 in 4 houses currently donates to the local fire departments.
The new revenue also would assist in the planned hiring of a township fire inspector, O'Neill said.
Priorities for the upcoming year
O'Neill said $900,000 in general fund reserves are being drawn for capital projects, and from year start to year end, the cash balance of the fund would be reduced from $8,800,000 to $7,350,173.
As part of next year's financing, the township is seeking a grant to improve Neff's Valley Park, and will have $450,000 available for farmland protection.
Other goals are to establish a new yard waste site, begin designing a new fuel station and acquire a new snowplowing truck while seeking grants for other equipment purchases.
Leftover $512,202 American Rescue Plan Act funds were approved to be transferred to the general fund, as the municipality was required to use all of the $1.7 million in coronavirus pandemic-recovery funding it was allocated by the end of this year.
This article has been updated to clarify the revenue raised from the new fire tax
