Newtown Township is considering a 3 mill tax hike for 2024.
Township Manager Micah Lewis told the Newtown Township Board of Supervisors Wednesday evening that he is proposing the supervisors adopt a budget with a two mill increase for the fire protection fund and a one mill increase to pay down debt service.
The proposed tax increase would raise the average municipal tax bill to $511 for the average assessed property.
Lewis told the supervisors and public that the township’s proposed 2024 tax millage rate of 13.115 is lower than those of Northampton Township, Middletown Township, Doylestown Township, and Warrington Township.
The township’s main tax revenue source is the earned income tax (EIT).
According to the proposed budget, the township plans to bring in $14.2 million in revenue, an increase from this year.
The proposed budget plans to spend $14.8 million.
The township is projected to end 2023 with a $4.1 million fund balance.
Lewis said the increasing costs are mostly from increased personnel costs, operational expenses impacted by inflation, and one-time capital purchases across several departments.
The two mill tax increase for the fire fund will go toward a $250,000 contribution to fire service and also pay for future capital costs, including a future planned purchase of a new fire engine.
The one mill debt service tax increase will help pay for the township’s efforts to covert the streetlights to LEDs. It will also fund a pedestrian safety upgrade at the crosswalk on Newtown-Yardley Road at Tara Boulevard.
The township plans to have 78 full-time employees by end of 2024, a slight increase over 2023, Lewis said.
It was noted that a previously announced federal grant will help cover the cost of four new firefighters to expand the paid fire service. The police department also plans to add an additional full-time officer.
The township also plans to put more than $1 million to repave several miles of township roadways.
The supervisors will vote on a preliminary budget in November and on a final spending plan in December.
