Tax increase included in proposed South Fayette budget

South Fayette’s 2018 draft budget includes a small tax increase.
The property tax increase of .25 mills would raise the rate from 4.48 to 4.73 mills, township manager Ryan Eggleston said during a public hearing Nov. 15.
For every $100,000 in assessed property value, South Fayette residents, if the budget is passed, will pay $473 in taxes to the township — up $25 from the last two years. The general operating budget for 2018 is projected to be $11.6 million, which is a $789,000 increase from last year.
The millage increase is projected to provide an extra $528,000 for the township, which Eggleston said is mostly to cover the police department adding two full-time officers. The police department is transferring one police officer to a full-time detective assignment. The two additional police officers would cost the township an extra $360,000 a year.
“That funding would go to one of the major initiative and goals that we outlined, which is increasing our police staffing and being able to provide even more public safety protection on the streets,” Eggleston said.
In other budget matters, Eggleston said health insurance increased 13 percent and the additional police officers will put the township over 50 employees, making it a “large employer” under the Affordable Care Act. The board will also increase funding for the township’s libraries by 10 percent to $138,000.
After Eggleston discussed challenges for the upcoming year, board president Joseph Horowitz praised the rest of the township staff on the improvements in recent years.
“We’ve done a lot of these budget presentations, and I was just thinking back on the first one. We’ve just come a long way. I think the challenges that year were not going broke and maybe buying a used truck or two,” Horowitz said. “I just want to thank everyone that’s here that contributed to this for all your hard work. It’s just pretty incredible how far we’ve come in five years, so everybody should be really proud of themselves.”
Horowitz went on to explain the township’s revenue has only increased 10 percent in recent years, meaning the improvements in his mind are from efficiency.
“It’s not like we’re doing things because we have more money. We’re doing things by spending more wisely,” Horowitz said. “I think it just shows that if everyone just works together and focuses on the way government is run I think you can do it in an efficient manner and not have to raise taxes every year.”
Following the budget hearing, the board unanimously passed a fund balance policy, which Eggleston said will be a multiyear process to achieve.
While the township currently has a fund balance, Eggleston explained the new policy is following the guidelines from the Government Finance Officers Association. Moving forward, the township will strive to have a fund balance that is equal to 20-30 percent of the annual budget. The fund will be split into two different groups, half being for “budget stabilization and economic uncertainty” and the other being for “emergencies or disasters.”
The budget will be discussed again during the board’s next meeting, Dec. 6. It will be voted on at the board’s Dec. 13 meeting.