- Upper Macungie's proposed 2024 budget does not include a tax increase, but would increase the refuse and recycling fee
- With expenditures estimated at $58.5 million and revenue estimated at $53 million, the proposed budget projects a deficit of $5.5 million
- In other news, the township rejected an agreement with the Parkland School District that would prevent the district from losing revenue
UPPER MACUNGIE TWP., Pa. — Upper Macungie Township residents may have to pay more for refuse and recycling collection next year.
Township Finance Director Bruce Koller presented the township's proposed 2024 budget to the Board of Supervisors on Thursday.
The proposed budget does not include an increase in taxes or the water and sewer fee. It would increase the refuse and recycling fee by $30, while continuing the senior discount.
Koller said in an interview that the township has to raise the fee because the cost of the service has gone up. He said he anticipates the cost will continue to rise, so the township may have to consider other providers.
“We're very conservative on our revenues as well as our expenses [in the budget], and overall every year, we come in a little higher on revenue and lower on expenses.”Upper Macungie Township Finance Director Bruce Koller
With expenditures estimated at $58.5 million and revenue at $53 million, the proposed budget projects a $5.5 million deficit.
Koller said the township can cover that deficit using funds from previous years, but the deficit may not be as high as projected.
“We're very conservative on our revenues as well as our expenses" in the budget” Koller said. “And overall every year, we come in a little higher on revenue and lower on expenses.”
The township is projected to get $8.7 million in grants next year — up from $1.6 million this year. And it's projected to have $11 million in cash reserves from previous years, almost triple what it had in 2023.
Koller said overall, he thinks the township is in a “very good position” financially.
Supervisors will vote on whether to approve the budget at its next meeting on Dec. 7. A copy of the budget will be available online and in the municipal building Friday morning.
Rejecting district agreement
Supervisors also voted Thursday to not continue an agreement with Parkland School District after making Berkheimer the township’s new Local Services Tax collector.
The Local Services Tax is levied on residents and nonresidents who work in the township. Parkland School District’s tax collection office used to collect it, but the school board voted in July to close the office because the person who heads it is retiring.
Upper Macungie, along with the two other townships in the district, previously gave the district $5 for every person from which the Local Services Tax collected, plus a $1 collection fee.
But when the board made that vote, it terminated that agreement.
The townships would gain — and the district would lose — a collective estimated $300,000 in revenue each year if they decide not to enter into a similar agreement with the district, according to an information packet from South Whitehall Township.
It's unclear how much money the district will save by closing the tax office.
The district proposed another agreement that would prevent the loss in revenue. But Upper Macungie supervisors Thursday authorized Township Manager Robert Ibach Jr. to send a letter to the district saying the township had “no desire to enter any other agreement.”
South Whitehall Township sent a similar letter to the district. North Whitehall Township supervisors will vote on whether to do the same at their meeting on Monday.
District spokeswoman Nicole McGalla said previously in an emailed response that it is “not accurate” that the district will lose $300,000 from closing the tax office.
She said the district would not have further comment until it hears from the townships.
