3-mill tax hike to fund Hempfield fire departments under consideration

Hempfield supervisors are once again considering two budget versions for next year — one that keeps the property tax rate steady at 3 mills for the 36th straight time and another that would double tax bills to create a stream of funds for the fire department.

It’s the same proposal the board considered in late 2024. The majority of supervisors then ultimately chose a 2025 budget that kept property taxes unchanged at 3 mills.

But they warned at the time that the fire tax proposal might return during preparations for the 2026 spending plan.

It has.

Unless a consensus emerges on the board for one proposal over the other in the coming days, both will appear on Monday’s agenda for an initial vote. Hempfield’s property tax levy hasn’t been changed since 1990.

Township manager Aaron Siko on Wednesday presented the versions of the 2026 budget while sounding the alarm that services residents expect could begin to see cuts if supervisors don’t approve the 3-mill fire tax. The $17.8 million spending plan expects the township will receive $6.8 million in revenue from earned-income taxes, Hempfield’s biggest funding source. Three mills of taxes brings in about $1.6 million.

“We can’t continue to operate on a 1990 level property tax budget,” Siko said.

If supervisors keep property taxes at 3 mills, the township will fall behind on infrastructure maintenance and possibly need to eliminate programs, he said. There is $2.1 million needed to pave roads in 2026 to keep up with the recommended amount of work. Officials can only budget $1.8 million, a drop from an average of $2.8 million between 2022 and 2024.

“If we don’t make a high rate of investment into our resources, you’re going to be needing to catch up,” he said. “And it’s a lot more expensive to catch up.”

If the 3-mill fire tax is approved, that revenue would solely fund the $1.95 million public safety department and allow officials to reallocate the existing 3 mills into other areas.

“I’m stressing to you that you guys have done a tremendous job over 35 years of keeping taxes low in Hempfield Township and there’s no reason that they can’t stay low,” Siko said. “The 3-mill fire tax is not going to be the thing that ultimately pushes us north of any other municipality within the county.”

The tax bill for an average resident would increase from $81 to $163 if the fire tax is approved. The proposal includes a rebate program for eligible senior citizens that would essentially wipe out the tax hike and keep their bills the same.

Siko said the rebate cost to the township would be an estimated $85,000 to $140,000 taken out of the $1.6 million in property tax revenue.

“If we are to ultimately take a look at biting the bullet on raising that property tax burden … this is an opportunity to make sure that we’re doing it in a responsible way that doesn’t hit every homeowner the same,” he said.

The same board that rejected the fire tax last year will be voting on the matter Monday.

Supervisors George Reese and Tom Logan supported it then and they continue to now.

“I do have a concern about our revenue source, I am in favor of a 3-mill fire tax,” Logan said. “I understand how the other costs involved in just the day-to-day operations are stressing our existing 3-mill property tax for our general fund operations.”

Reese said it’s unacceptable that Hempfield is going backwards in paving. He questioned the increasing budget for the fire department and asked officials to examine it.

“This is something that needs to be done and it’s time,” he said. “Supervisors should look at doing the right thing for our residents. They expect us to make good decisions based on what our needs are, not what our wants are.”

Supervisors Bill Bretz, Jay Anderson and Doug Weimer opposed the fire tax last year. Their opinions may have shifted.

“I acknowledge the fiscal challenges in this budget if we maintain the current millage level,” Bretz said. “Last year when we reviewed this, I felt the compromises that needed to get made to balance that budget at the prior millage level were acceptable. Much more concerned about that this year, that maybe we are compromising too much to try to do that. I think the idea of a dedicated stream of support for our volunteer fire service is a worthy endeavor, but it is difficult to consider a millage increase without considering the impact on our residents, especially the seniors on fixed income.”

Anderson said the township needs to do something to bring more money in.

“If we implement this rebate program for the seniors and the 3-mill fire tax increase, I think that’s the best of the worst, because we clearly need more revenue coming into the township and at least that would give some sort of relief to those on fixed income,” he said.

Weimer plans to spend more time looking through the numbers.

“We certainly have some tough decisions here to make,” he said.