Murrysville council considers balanced $9.5 million budget for 2022

Murrysville Finance Director Diane Heming presented council members with a balanced $9.5 million budget for 2022 that does not call for a property tax increase, but does include revenue from hikes to both the earned income and real-estate transfer taxes.

Council enacted its first tax bump since 2007 on Wednesday night, increasing its share of the earned income tax from 0.5 to 0.7%, and the real-estate transfer tax from 0.5 to 1%.

Heming said the process this year has been “the most challenging budget I have had to prepare for council’s consideration and approval during my 12 years of service.”

Total real estate millage will remain as 12.15 mills – a mill is projected to generate 334,000 in 2022 – but the way it is allocated has changed:

• 5 mills ($1.75 million) will go to the municipality’s general fund

• 3.2 mills ($1.06 million) will go to the capital reserve

• 1.3 mills ($434,420) will go toward debt service

• 1.35 mills ($450,900) will go toward emergency equipment purchases

• 1 mill ($334,000) will be dedicated to the Murrysville Community Library

• 0.1 mills ($33,500) will go to the municipality’s hydrant fund

• 0.2 mills ($66,800) will go to Murrysville Medic One

Heming said that revenue from earned income began outpacing property taxes nearly a decade ago.

“The earned income tax is a fundamental change for the municipality,” Chief Administrator Jim Morrison said. “It’s a way to raise revenue and keep pace with costs that are beyond the control of the municipality.”

In addition to rising overhead costs, Heming said things like construction supplies for public works and park utility maintenance costs have increased.

“We tried to logically decide where these funding sources should go so they’re available for the projects that need done,” Heming said.

About $3.4 million in capital budget funding is being carried over from projects that were delayed in 2021, like landslide work along Meadowbrook Road, a partially grant-funded amphitheater at Murrysville Community Park, the next phase of realigning the Logan Ferry/Sardis intersection near Old William Penn Highway, maintenance work on public works facilities and other smaller projects.

Additional revenue from the hike in the real-estate transfer tax, estimated at about $600,000, will be used for road work and capital projects, Heming said.

Council is expected to vote on the final budget next month. Its regular meetings are set for 7 p.m., Dec. 1 and 15 at the municipal building, 4100 Sardis Road in Murrysville.

Agendas are available at Murrysville.com.