In a split vote Tuesday, the Newtown Township Board of Supervisors approved a 2021 budget that nearly doubles the property tax rate.

The $13.8 million spending plan increases the township's millage rate from 4.5 mills to 8.49 mills, an 89 percent jump. [Calculate your tax here.] 

[Several] last-minute expense cuts to the budget [were made] — eliminating a new Director of Zoning & Code Enforcement position that was slated for next year, nixing a $20,000 study for a new police building, reducing new police vehicles from three to two and reducing the road program by $50,000 — that were ultimately approved as part of the spending plan.

Supervisors Oxley, John Mack and Dennis Fisher voted in favor of the budget. Supervisors Philip Calabro and Kyle Davis voted against the measure, with Calabro noting that the revisions did not impact the tax rate increase*.

[Listen to all comments here.]

The full budget is available for viewing here.

Related Content:

• “Newtown Supervisors Approve Final 2021 Budget By a 3-2 Vote”; http://sco.lt/9KWKYa
• “Newtown Residents Voice Concern Regarding the Preliminary 2021 Budget”; http://sco.lt/5xuLTc
• “Dear Santa, Please Lower Taxes”; http://sco.lt/5KUby4
• “Newtown Township Supervisors Vote to Advertise the Preliminary/Proposed 2021 Budget”; http://sco.lt/4y6F6G
• “Newtown Township's Proposed Tax Increase Put Into Perspective”; https://bit.ly/unalarmingNTtax
• SURVEY RESULTS: “What Would You Cut From the Proposed 2021 Newtown Township Budget?”; https://johnmacknewtown.info/budgetcutsvy.html

A recent article published in the Newtown Patch entitled "Newtown Supervisors Look To Tweak A Taxing Budget Proposal" has caused quite a stir amongst many readers of the article - at least among those who posted comments. The misleading subtitle - The Newtown Township Board of Supervisors voted to revise the 2021 budget that proposes a 178 percent property tax hike. – is the probable cause of this mishegas!

"Even 40% is too high in this economic environment," said one commenter.

I have found that many people are misunderstanding what tax the township is looking to increase. As a consequence, the often-cited percentage increase numbers are misleading.

The average Newtown Township homeowner such as myself pays about $4,800 in TOTAL property taxes each year. However, only about 3% of that – about $144 – is levied by Newtown Township. Bucks County gets $802 and the Council Rock School District (CRSD) gets a whopping $3,862! Imagine those numbers as dollars piled up next to each other as in the diagram shown above.

Because the township real estate tax amount is currently very low, any increase ON A PERCENTAGE BASIS WILL LOOK ALARMINGLY LARGE, but in terms of dollars and cents it doesn't look alarming at all!

Review the dollars & cents numbers and figure out what your taxes are here...

Newtown Township property owners could be facing much bigger tax bills if recommendations from a consultant are adopted by the township supervisors.

A final report from Econsult Solutions Inc. that lays out a five-year financial plan for the township recommends a property tax hike of between 5.75 and 9 mills, depending on what other measures are taken to increase revenue and create more financial efficiency.

That's an increase of between $215 and $310 in annual taxes for a real estate owner with a property assessed at the township average of $37,459. The increase would be applied to the township's general fund now funded strictly [mostly] with an earned income tax. Newtown Township's current total real estate tax millage of 4.5 is among the lowest in Bucks County.

Citing the economic impacts of the coronavirus pandemic, some residents urged against any tax increase in emailed comments read during the meeting where the supervisors voted to accept the consultant's final report.

"Given our job losses, the last thing we need is a tax increase," one resident wrote.

"Raising our real estate taxes is totally unacceptable," another stated.

Econsult's other recommendations include hiring 10 more employees over the next five years, including an assistant township manager, full-time code enforcement manager, three new police officers and five new paid firefighters.

The supervisors will consider the recommendations as part of their work on the 2021 budget that will start soon, but are not obligated to implement any of them.

Newtown Township's savings account will be gone by the end of 2021 if there is no significant hike in property taxes, the report projected. This year's $13.1 million township budget has projected revenue of $12 million and uses $1.05 million of the $2.37 million fund balance, or savings account, to balance revenue and expenses. That will leave a projected $1.3 million in the savings account at the end of the year.

Among other advantages, the property tax increase will bolster revenue in the general fund and help make sure the township maintains a fund balance of at least 10% of annual expenses, Econsult official Steve Wray said during the recent supervisors' meeting where the final report was accepted.

Reached after the meeting, supervisor John Mack said he would be wary of hiring five more paid firefighters without knowing yet whether the township will get a grant that would pay the salary and benefits for three of them.

[CORRECTION: The SAFER grant application asked for enough money to pay 100% of salaries and benefits for ALL 5 new hires for THREE years. After that, the township will have to pay for those expenses. Keep in mind that career firefighters are part of a bargaining unit with well-defined employment rights.]

"However, I do see the need to raise taxes in order to end the deficit spending that has been the norm over the last few years even without hiring new personnel," Mack said.