Pine's 2021 budget keeps taxes lowest in county, maintains services

Pine officials have approved a budget for 2021 that curbs spending and uses money left over from this year to avoid a tax hike.

The nearly $12.19 million general fund budget unanimously approved by supervisors Dec. 7 allocates 7.13% less money than this year’s spending plan to reflect an anticipated reduction in revenue because of the coronavirus.

The statewide shutdown order to slow the spread of the virus resulted in a reduction in tax revenue from several sources and less money from rent and program fees charged at the township’s community center.

“To compensate, the township will reduce expenses as much as possible and use accumulated fund balance to make up any deficit,” manager Scott Anderson said. “Fortunately, we don’t foresee the need to raise taxes or borrow money.”

The millage rate used to calculate property tax bills will remain at 0.998 mills, which is the lowest in Allegheny County. The unchanged rate means property owners will continue to pay 0.998 cents for every $1,000 of their property’s assessed value, or $99.80 a year for a home valued at $100,000.

The township also approved extending the Homestead/Farmstead Exclusion with the maximum allowable amount — 50% of the median assessed value of a residential property in the township.

At $4.99 million, money from the township’s half of the 1% wage tax will account for 41% of revenue next year. The other half of the wage tax goes to the Pine-Richland School District.

The property tax is expected to generate $1.48 million in revenue next year for the township.

While income from the property tax is expected to increase by 4.14% next year, money from other sources are likely to drop in several major categories, including:

• 5.58% less from the county’s Regional Asset District tax;

• 4.86% less from wage and business taxes;

• 13.26% less from state shared revenue;

• 78.84% less from interest and dividend earnings;

• 25.79% less from fees charged for culture and recreation programs;

• 17.13% less from fees charged for public safety services and building permits.

To save money, the township reduced the budget for general government administration by 4.86% and the budget for improvements to buildings by 27.06%.

The budget for the Pine Community Center also has been trimmed by 19.13%, and spending on the parks will drop by 31.47% in 2021.

While belt-tightening measures are being implemented next year to balance the budget, the spending plan maintains overall services and still contains significant earmarks for various services and projects, including:

• $466,597 for the Wexford Volunteer Fire Company to help cover general operating expenses and equipment and building upgrades. The township also covers workers’ compensation and other insurances for the fire department.

• $1.95 million payment to the Northern Regional Police Department — an increase of 7.1%;

• $394,000 for the public works department to replace fuel tanks and buy a new 10-ton dump truck;

• $1.4 million for stormwater improvements projects;

• $ 1 million for park, trail, field and playground improvements;

• $2.3 million for road paving.