Ross budget keeps property tax rate the same for 6th consecutive year
Share this post:
In June, Ross Township commissioners reopened this year’s budget to trim $2.1 million in spending to deal with an expected loss in revenue from the statewide shutdown order to slow the spread of coronavirus.
Next year’s spending plan is about the same as this year’s original budget but is balanced by using more leftover cash to provide the same level of government services.
The nearly $23.5 million budget for 2021 is just $47,000 less than the 2020 budget despite major decreases from several key revenue sources.
The property tax rate will stand at 2.7 mills, which means the owner of a home at the township’s median value of $133,800 will pay $361.26 next year to fund township operations.
It will be the sixth consecutive year that the tax rate has been unchanged.
The property tax, which funds 30% of the budget, is the single largest source of income for the township. It is expected to generate $7.14 million in 2021, or 1.28% more than this year.
The second largest source of income for the township is the 1% tax residents pay on their income. It funds about 22% of the general fund budget. Revenue from the tax is expected to increase by 1.46% next year and generate $5.2 million.
“This budget acknowledges continuing economic uncertainty and the need to maintain fiscal resiliency,” the township’s finance director Dan Berty told commissioners in his budget address. “In 2021, the township staff will continue to search for effective ways to provide services and programs that the residents have come to expect in the most cost-efficient manner.”
While money from the property tax is expected to exceed this year’s collections, other levies won’t produce the same revenue as previous years.
Income from the 1% mercantile tax retailers pay on their gross sales is expected to drop significantly because of the disruption to businesses caused by the pandemic.
This year’s budget anticipated about $850,000 from the tax, but revenue has only reached about $750,000. Next year’s budget uses the current collection rate instead of the higher amount originally budgeted for 2020.
Money from the 1% business privilege tax non-retail companies pay on their sales also is expected to be down. The township expected to collect about $475,000 from the tax, but only $408, 280 has been received. Next year’s budget expects revenue from the tax to be about $425,000, or 10.5% lower than in 2020.
Income from permits, which was expected to generate $464,300 this year, will likely mirror the actual amount collected in 2020. Next year’s budget reduces income from the tax by 14% to $399,300.
Money the township makes from recreation programs will likely be down by more than 25% next year. Ross expected to collect $204,750 from the fees but only took in $152,450.
To offset some of the losses, the township refinanced bonds issued in 2015 to save more than $437,600 in future interest on the loans.
The township also was able to secure a $250,000 Grant from Allegheny County for the Cares Act federal pandemic relief program.
When the budget was revised this summer, about $475,000 was removed from $1.52 million earmarked for road paving, which typically is the largest capital project the township undertakes each year.
Next year’s budget restores spending for road improvements to about $1.5 million by using money from this year’s projected fund balance.
The township also has committed $200,000 to complete the second phase of improvements at Denny Park and will spend about $390,000 for park improvement projects at Seville, Sangree, Herge and Mayer parks. Another $20,000 will be spent to resurface Sharmyn Park.
The township also plans to spend about $75,000 to make improvements to ballfields by hiring a professional contractor to perform the work.