O'Hara's 2023 preliminary budget contains no real estate, earned income tax hike

O’Hara officials plan to hold the line on real estate taxes with next year’s budget.

Council voted 5-0 at a combined workshop and regular meeting on Nov. 9 to approve the first reading and advertise its preliminary 2023 budget.

Council President Robert Smith and Councilman Richard Hughes were absent.

The budget’s second reading and formal adoption are scheduled for Dec. 13.

Township millage rate is projected to remain at 2.1 mills. Budget documents indicate the earned income tax will remain at 0.8%.

Manager Julie Jakubec said the township traditionally has strong collection on both revenue sources.

“We’re lucky that we have a good real estate tax base,”she said. “Also, as earnings go up, the earned income tax dollar amount goes up with those earnings. If somebody gets a 3% raise, then they are paying the next year on 3% more of what they paid this year. We really watched that one closely. We budget revenues very conservatively because of the economy. Everything here is a rule of conservatism.”

O’Hara’s last real estate tax hike came in the 2021 budget. The rate went from 1.9 mills to 2.1 mills.

Projected revenues and expenses for 2023 were listed at about $15.59 million.

Income includes about $2.7 million in property taxes, $4.86 million in earned income and real estate transfer taxes, $4.1 million in utility fees, $1.15 million in shared revenue and grants, $214,500 in business licenses and permits and $25,000 in fines.

Spending includes $1.12 million for administration, including salaries and benefits; $2.31 million for police service; $487,000 for fire, ambulance and emergency management; $556,000 to repay debt; $368,000 for community development and $222,000 for pensions.

About $3.38 million is earmarked for capital improvements. Those projects include stormwater facility upgrades along Epsilon Drive in RIDC Park, trail stabilization at O’Hara Community Park, upgrades to several police vehicles and township office entry doors.

A stormwater project along Ravine Street and Powers Run sanitary sewer upgrades that had been projected for 2022 were moved to 2023.

Officials plan to use about $2.03 million of township reserve funds to help balance the budget and fund capital improvements.

Jakubec said the reserve fund, also referenced as the township’s fund balance, is expected to top $3.6 million by the end of this year.

“We have a very healthy fund balance,” she said.

Councilman George Stewart commended Jakubec for her thorough financial analysis.

“She is the best accountant,” Stewart said. “She’s always trying to work within our means. We’ve got a number of grants coming in. We’re able to do a little more when we have more money coming in.”

Budget planning began in July. The 145-page budget is available for public inspection at the township office, 325 Fox Chapel Road.