Newtown Township residents won’t see a tax increase in 2025 if the proposed budget is approved as presented.
Officials presented the preliminary budget to the Board of Supervisors last month and highlighted a plan that maintains current service levels and staffing while increasing funding for road paving.
The proposed budget is for $16.3 million, a more than $200,000 increase over 2024’s spending.
“There is a structural deficit in the budget,” Township Manager Micah Lewis said. “The revenue total is less than the expenditure.”
After a tax increase for 2024, the millage rate is proposed to remain at 13.115 mills, which means an annual tax bill of $511.10 based on a house with an average assessment.
The proposed budget features a projected general fund balance of $2.53 million for 2025, exceeding the township’s policy of maintaining a minimum 10 percent fund balance.
The positive outlook is largely due to a carryover from the 2024 fund balance, Supervisors Chairperson Dennis Fisher said.
The proposed budget includes a one-time transfer of $1.2 million to the fire fund and it allocates an additional $100,000 for road paving compared to the previous year.
Among the capital projects for 2025 are new police vehicles, mowers and a trailer for public works, and a new support vehicle and building study for the emergency services department.
The budget also proposes salary adjustments for key management positions to remain competitive in the current job market. Lewis noted.
“There is no pool of applicants out there for these positions. And the other towns around us have realized that and they’ve increased salaries,” Lewis said.
Supervisor John Mack raised concerns about the long-term sustainability of avoiding tax increases.
Lewis acknowledged the challenge and indicated that future tax increases may be necessary to address ongoing structural deficits.
The emergency services office, which runs the career fire department, will have its funding structure changed due to recent state legislation. The Pennsylvania General Assembly passed an amendment to the Second Class Township Code allowing up to 10 mills to be allocated for fire and emergency services.
In response, Newtown Township will move all fire department revenues and expenditures to a separate fire fund.
Supervisor Elen Snyder said more firefighters will be needed in the future and officials should keep that in mind for future budgets.
Supervisor Phil Calabro said he was optimistic about potential tax revenue increases from new developments.
The supervisors voted unanimously to advertise the preliminary budget and left open the possibility of making changes before final approval.
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