Gilpin would use reserves to close budget deficit, keep property taxes the same

Gilpin’s proposed 2025 budget calls for no tax increase, but the township would use more than half of its reserve money to close a projected $113,000 deficit.

The proposed budget includes nearly $973,000 in spending but about $860,000 in revenue, according to the township. The township’s property tax rate would remain at 11 mills, with owners of property assessed at $24,000 continuing to pay $264.

Supervisor Charles Stull said the budget deficit would be covered with money from the township’s $209,000 fund balance. The majority of revenue is projected to come from real estate taxes and earned income, EMS and real estate transfer taxes.

During a Nov. 13 budget workshop meeting, supervisors discussed the possibility of altering, or even eliminating, the township’s annual donations to the Gilpin Volunteer Fire Department, Gilpin Leechburg Park, the Leechburg Area Pool and Leechburg Public Library.

The library receives an annual $500 donation while the other three services receive $3,000 each.

None of the cuts is reflected in the proposed budget.

Supervisor Jeremy Smail called the situation a Catch-22, saying he understands the importance of the services these entities provide, but feels they were doing taxpayers an injustice by giving money to services that are able to fundraise and accept donations to raise annual revenues.

“I just think we can only generate revenue by raising taxes, and each of these entities has the ability to raise money on their own,” Smail said. “And I still feel like, if people want to donate, they can donate their money how they feel fit.”

He said he has reservations about sending tax money outside of township coffers.

Stull said, because of the donations from the township, residents are able to buy annual pool passes at a discounted rate and can access the library for free.

“I lean to the fact that these are all township services, especially fire department, park and pool,” Stull said. “These are all things offered to our community. We’re helping keep them afloat.”

Smail suggested, rather than donating a total of $9,000 yearly, the township should donate $5,000 to one of the entities each year on a rotating basis. Supervisor Kris Kulick suggested the township form some type of donation program so residents could have the option to give however much money they want.

A proposal earlier this month to discontinue township donations to the fire department didn’t sit well with Duane Knepshield, fire department president.

“Cutting our funding could jeopardize our ability to respond effectively,” Knepshield said.

In addition to the $3,000 yearly donation to the fire department, the township also picks up a little more than $9,000 in fuel and insurance costs for the department.

Knepshield said other departments are funded by their municipalities and pointed out the cost of just a few pieces of equipment.

“A set of tires for one of our trucks is nearly $6,000. And if we were to replace one of our (fire trucks) today, it would cost nearly $700,000,” he said. “This is not just a donation — it’s an investment in the safety and well-being of Gilpin Township residents.”

Knepshield said the department’s efforts to raise annual funds — through bingo, online raffles, gun bashes and a mailer campaign to residents — have consistently received community support.

Other notable expenditures in the proposed budget include just over $380,000 for public safety, nearly $200,000 for public works and about $23,000 for health and human services.

Supervisors will vote on the budget at 7 p.m. Dec. 26.

Residents can view the proposed budget at the township building, 589 State Route 66, or online at gilpintwp.com.