Hempfield lays out proposed 2021 budget

Hempfield leaders are leaning on tax revenues from a soon-to-be casino to balance their 2021 budget that’s facing a $1 million shortfall.

Melanie Phillips, director of finance for the township, presented a more than $13.4 million budget to the board of supervisors this week. The proposed budget, which does not raise taxes for the 31st consecutive year, includes reduced costs from department heads as local officials work to account for lost revenues incurred during the coronavirus pandemic.

Proposed reductions include $230,000 in general government costs, $6,100 in fire and emergency management, $62,000 in code and safety, $387,000 in public works and $157,000 in parks and recreation. Another $300,000 will be made up through projected casino revenue streams, Phillips said.

“We are expecting to receive more than that, but that’s all we needed for this particular budget,” she said of the casino, which is expected to generate $1.7 million in tax revenues each year for the township once it opens at Westmoreland Mall in November.

Tactics used in the 2021 budget are similar to those utilized this year as revenues for earned income tax, real estate tax, building permits and recreation fees continued to drop compared with last year’s numbers, Phillips said. In April, Phillips suggested freezing part of the budget, saving the township $750,000.

Still, by August, the township was facing an $800,000 deficit.

“Controlled spending has put the township in a position to avoid a deficit this year, provided all continue to exercise the same control,” Phillips wrote in her report.

Also included in the 2021 budget were capital projects totaling more than $12.3 million. Projects range from storm water management to bridge inspections and repairs. Supervisors will host a meeting in the coming month to further discuss prioritizing projects, which could be funded by casino revenues, loans and about $10 million from the general fund.

“These are broader policy discussions … as to how we need to look at 2021 and beyond to try to not hit the direct general fund as deep or go after the reserve as deep,” Supervisor Rob Ritson said.

A date for that meeting has not been set. According to township Manager Jason Winters, a preliminary budget will be on next month’s meeting agenda.