Frazer's proposed budget calls for 76% real estate tax increase
After not raising property taxes for at least 25 years, Frazer supervisors are proposing to raise the township’s tax rate by 76%.
Supervisors on Tuesday unanimously passed a $1.3 million preliminary budget for 2021 that includes a 1.08-mill real estate tax increase. The increase could generate an additional $133,000 next year.
“The need for the increase is a result of several anticipated decreases in revenue in 2020, including the Local Services Tax, amusement tax and licenses, fines, sales tax and real estate tax,” said Supervisor Lori Ziencik. “The real estate tax revenues are nearly $55,000 less than two years ago due to the reduction in the Allegheny County assessed values.”
“Obviously our board is conscientious when it comes to increasing taxes, but you can only put it off for so long before you’re being irresponsible,” Ziencik said. “We all felt that it’s time we start increasing. You never want to be a position to do a 3-or 4-mill tax increase in one year. It’s the responsible thing to do.”
The township’s tax rate would go from 1.42 mills to 2.5 mills under the proposed increase.
Tax hike examples
With the proposed increase, a homeowner with a median home value of $118,700 would pay about $297 in real estate taxes — about $128 more than this year.
Ziencik said the township will continue to offer a $40,000 Homestead Exemption for residents.
Someone with the homestead exemption who has a home valued at $118,700 would pay taxes on $78,700 of that value. They would pay $85 more in taxes under the proposed tax, with their bill going from $112 a year to $197.
Ziencik said even with a tax increase, the millage rate would still be relatively low compared to other municipalities in Allegheny County.
“If you look at what people are paying for two cases of beer or a cellphone … they get police protection, and all of their roads are clear in the winter. It’s the best deal around,” Ziencik said.
The total overall spending plan equates to roughly the same amount as this year: $1.3 million.
Close to half the proposed spending — $600,844 — would be put toward public safety costs. That’s about an 11% decrease from this year, in which $677,600 was budgeted.
Ziencik said the reason for that decrease is because the township budgeted close to $50,000 for a new police vehicle and equipment for the vehicle this year. It won’t be doing that next year.
The township has two full-time officers, police Chief Terry Kuhns and Sgt. Aaron Scott. The rest are part-timers.
Scott is in line to receive a salary increase. He will make $48,339, a 3% pay increase from his salary of $46,925 this year. Kuhns’ salary will remain the same at $69,435.
Part-time officer salaries are projected to decrease about 6% from about $290,800 this year to about $273,000 next year.
Kuhns didn’t reply to a phone message seeking comment.
Supervisors will vote to adopt the final budget at their December meeting.
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