Strasburg Twp. supervisors vote to advertise draft 2025 with property tax cut
When: Strasburg Twp. Board of Supervisors meeting, Nov. 4.
What happened: Supervisors voted to advertise a draft 2025 budget that will include a 55% real estate tax cut, with final passage to occur at the Dec. 2 meeting.
By the numbers: Seeking to take advantage of the current state of township finances, supervisors are proposing a reduction of the millage rate from the current 0.555 mills to 0.255 mills, or a $30 reduction per each $100,000 of assessed value, leading to what Mark Deimler, township administrator, referred to as a "revenue neutral" or balanced budget.
Details: Projected 2025 general fund revenue is slightly over $2 million, as opposed to the 2024 budget of $1.94 million. Year-to-date revenue has already exceeded the projected 2024 amount by $45,000. Expenses are set at $1.99 million in the coming year, down from the budgeted $2.1 million in 2024. The 2025 general fund surplus is $15,839, according to projections. However, the surplus will be absorbed by insurance and health care expenditures that will increase, Deimler said.
Quotable: "Our consideration for lowering the tax is we have been successful in keeping a respectable reserve," said Vice Chair Mike Weaver.
Discussion: Deimler presented the board with the option of approving a lesser cut or no cut at all, with the provision that every tenth of a mill generates about $39,805 in revenue. Supervisors decided that a full cut was the appropriate response. Chair Tom Willig and Weaver quizzed Deimler about potential expenses that would make a tax cut undesirable, such as sewer work or road repair, or the mortgage on the township park. Deimler stated that the park will be paid off next year, that a recent sewage pipe repair was a one-time expense, and that the state liquid fuels fund helps with road repair funding.
More: Describing the factors contributing to the township's fiscal position, Weaver pointed to interest on township bank accounts exceeding what the township receives in real estate taxes and new housing developments bringing transfer tax revenue. Deimler also cited the township's high earnings from the earned income tax compared to other rural townships.
Expenses: The largest projected general fund expense is $285,000 for road repairs. The township is increasing its budgeted amount for police services from Strasburg Borough from $60,000 to $105,000. The township plans to maintain its $32,000 donation to the Strasburg-Heisler Library and will dedicate $104,000 for its farmland/open space preservation fund.
Zoning amendment: Supervisors voted to amend the zoning ordinance to increase the height allowed for carriage barns or other structures for noncommercial livestock from 25 feet to 28 feet. The township planning commission voted in support of the change, and the county planning commission did not respond within the 60 days specified by law, Deimler said. At the February meeting, supervisors had noted several variance requests from Plain Sect property owners seeking relief from the 25-foot limitation. The change will streamline approvals for the structures to have a second floor for hay storage.
