Montgomery Township Supervisors Could Raise Taxes for First Time in 15 Years, Vote Scheduled for Monday

Tony Di Domizio•

A 15-year tax rate streak could be broken by Montgomery Township Supervisors this month with a majority vote to pass the 2022 preliminary budget, which proposes to increase the tax rate by 1 mill, generating $1,956,117 in revenue.

The township millage rate has been 1.49 mills since 2006, according to the 2022 Montgomery Township Preliminary Budget report, which was presented to the five-member, all-Democrat Board of Supervisors in November. Supervisors are expected to vote on the budget at its Dec. 13 meeting.

One mill equates to 0.1 percent of assessed property value and its improvements.

All in all, Montgomery Township expects $4,724,609 in real estate tax revenue for 2022, according to the budget report. This total includes $2.163 million from the general fund, $1.06 million from the fire protection fund, $512,307 from parks and recreation, and $986,665 from debt service.

According to the budget tax levy summary, the township levies taxes in three funds: fire protection, parks and recreation and debt service. These funds comprise 54 percent of all real estate tax revenue, per the report. Of that 54 percent, 46 percent is for the general fund, which goes toward operating expenses and public safety. About 21 percent of the revenue is used to repay debt.

According to the budget summary, general fund revenues for 2022 are estimated at $13.69 million, and expenditures are estimated at $13.409 million. Of that expense, the police department encompasses 52 percent of total expenditures, at $6.925 million, followed by public works at $1.75 million.

Township Finance Director Brian Shapiro reported that total operating revenues are projected at $300,000 higher than the 2021 budget.

Other highlights of the 2022 budget:

An expense of $45,500 to hire a GIS Coordinator for the township’s expansion of the GIS system.
A decrease of $4,000 in real estate tax collection costs by the tax collector, and in earned income tax, local tax and business tax collections by Berkheimer Associates.
An expense of $10,000 in the finance department for reclassification of two employees who have taken on more work in the wake of the pandemic.
An increase of $35,000 in engineering costs due to mandated stormwater program updates.
A decrease of $20,500 in buildings and grounds costs due to utility renegotiation in the electric supply contract.
A $18,500 increase in police services and a $5,000 increase in fire protection services.
A $33,000 increase in code enforcement costs due to third-party inspection services.
A reallocation of $12,000 in snow removal costs.
A reduction of $200,000 in employer paid benefits due to lower Police Pension Plan contributions.
A decrease of $33,000 in insurance costs, due to better renewal rates.
An interfund transfer of $1.18 million to aid the Community Recreation Center, debt service fund, and fire protection fund.
A proposed increase in the allocation of real estate taxes of $730,500 to fire protection.