Assessment appeals from commercial property owners caused property values to decline in the township.
The Whitpain Township Board of Supervisors met on Dec. 3 to discuss a potential “sizeable” tax increase to address a budget shortfall.
Over the last two board sessions, supervisors have debated how to handle the situation and have presented different options for the increasing costs in the township.
“Reflecting on the last two meeting that we’ve had, we’ve shown lots of different numbers and lots of different financial projections,” said Township Manager Eric Traub. “There are significant financial concerns moving forward.”
According to Traub, Whitpain Township had its first decline in assessed value in eight years. To combat this issue, the township is mulling over a millage change in the 2025 budget that would balance the 2026 budget and provide more stability moving forward.
One scenario discussed would result in a .75 mill increase to current mill rates. Based on this rate, a homeowner would pay approximately $14 more per month in real estate taxes in 2025. The last tax hike in Whitpain Township occurred in 2010.
The total assessed value of all properties in Whitpain declined this year due to assessment appeals from commercial property owners. Earned income, real estate transfer, and local services tax revenues also have declined from previous years.
A second scenario, in which the township would wait until 2026 to enact any tax policy, would result in an increase of about $23 per month for homeowners.
“1.2 mills is going to be necessary in order to put the township’s finances back in order for 2026,” Traub said if the township decides to hold off on policy changes in 2025.
“2026 is looking like a year where the township will absolutely have to do something on the revenue side,” Traub added.
Whitpain also plans to address the Fire Tax and Death Service funds in 2025, which would result in a request to 0.12 mills in order to stabilize those funds through 2026.
“We want to continue offering the quality municipal services our community has come to expect,” said Board Chair Scott Badami. “Continually improving our parks, expanding our trail network, and improving our intersections while fully funding our police, fire, EMS, and public works is a costly endeavor.”
Badami said that the choice has not yet been decided, but that the supervisors are weighing options on the table.
“Although no decisions have been made, my fellow supervisors and I will seek to be good stewards of Township resources while also offering first class government services,” he said. “As part of our budget discussions, each of our Department Heads has been tasked with sharpening their pencils to control expenses.”
Budget discussions and public comment will continue at the next Board of Supervisors meeting on Dec. 17, which will be the last scheduled meeting of the year.
“There is no good time to have these discissions,” Traub said. “We haven’t had to have them in 15 years. In my tenure, I have never recommended a tax increase. But in terms of the financial fundamentals of where Whitpain Township is now, it’s a question of not if, but when,” Traub said.