Lansdale Borough Council is eyeing a solution to a $550,000 deficit of planned expenses for the 2022 budget, including potentially hitting taxpayers with a 0.5-mill tax increase that would bring in $406,000 in additional revenue, according to The Reporter.
The increase would average about $60 more per year, based on an average assessed property value of $120,000.
Finance Director Glenn Dickerson last week updated council and the administration and finance committee on the 2022 budget deficit, which may call for deferment of capital projects, according to the article. Dickerson told council that the half-mill increase is needed due to a “short-sighted” five-year capital needs project plan, which should now be pushed to 10 years.
Capital projects that could be deferred include a $250,000 wastewater treatment plant pump station upgrade near Franklin Street, $200,000 in electric department office repairs, and a $100,000 electric substation upgrade, per the article.
The capital projects also coincide with employee salary and benefit increases and construction cost increases.
There are about $300,000 in federal COVID-19 relief funds available to Lansdale Borough, which could aid the shortfall situation.
Councilman Leon Angelichio, who did not seek re-election and will be replaced by Ward Three councilman-elect Mark Ladley, said there were projects that could be revisited every two or three years to lessen the burden and now council is at that point.
“The reality is,” he said, “the responsible financial decision is to do what’s in the best financial interest of the borough. If that means increasing the taxes, it’s the smart thing to do.”
There are two other options on the table, however: a 0.25-mill increase, which would generate $203,000 in revenue and cost taxpayers about $20 more, and a 0.375-mill increase, which would generate $304,000 and cost taxpayers $45 more in taxes, according to the report.
Council is poised to approve preliminary adoption of the budget Nov. 17, with final approval coming Dec. 15.
Read more details on the Lansdale budget deficit here.
The millage rate – derived from the Latin root word millesimus, which means "thousandth” – is the amount per $1,000 used to calculate taxes on a property.
Real estate taxes are based on two things: the assessed value of a property, which is set by Montgomery County, and the millage rate. Each of the three taxing authorities — Montgomery County, the municipality, in this case, Lansdale Borough, and North Penn School District — have their own millage rates.
The assessment is a percentage of the market value of your property. The assessment is the foundation, which the taxing authorities use to determine the amount of real estate taxes owed using their tax rates. Today, the assessed value is roughly one-half of the current market value.
An assessment can change depending on certain factors, such as adding a pool, a deck, or a finished basement. It can go down if the property owner feels that the assessment is too high, which involves a county Board of Assessment Appeals process.
You can find out more about current millage rates in the school district at this link.
See also:
Mainland Pointe Mixed-Use Development Gets Final OK from Lower Salford Township
Lansdale Public Works Committee Prepping for Additional Merck Sewage Flow Beginning Next Year
Montgomery Township Board of Supervisors Adopts Resolution to Recognize June as Pride Month
