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2025 Budget: South Fayette Township
South Fayette Township adjusts property tax millage rate
Additional dollars fund capital improvements
By Andrea Iglar
South Fayette Township has adopted a $19.5 million budget for 2025 with a property tax increase of 1.25 mills, the first tax rate adjustment in seven years.
The real estate tax rate increased from 4.73 mills to 5.98 mills, resulting in an additional $125 per year for each $100,000 in home value.
For the median assessed home value of $163,900, the township tax bill increases from $775 to $980 a year.
The township Board of Commissioners adopted the budget in December.
The five-member board explored various options, including possible fees, to alleviate inflationary pressures and cover higher costs for everything from utilities to waste collection.
The board ultimately found that a tax rate adjustment, which covers residential and commercial taxpayers, would be the most equitable approach.
Board president Chuck Lazzini said commissioners held three budget workshops and examined every line item, making cuts that would not reduce or negatively impact services.
“This isn’t something we want to do, it’s something we need to do,” Lazzini said. “Due to big-picture economic headwinds, we need to be responsible and not put the township in a poor fiscal position.”
This is the township's first property tax adjustment since 2018, when the rate increased by 0.25 mills. In 2016, the rate had increased by 1 mill.
The increase is expected to generate an additional $2.1 million in 2025.
Nearly $2 million will be transferred to the capital fund for road paving, truck and equipment replacement, facility rehabilitation, matching commitments for park grants, and other projects.
Capital improvements involve public assets such as infrastructure, facilities and equipment that have a useful life of at least 10 years.
Township Manager John M. Barrett said that in prior years, the operating budget had enough money to comfortably fund capital projects. However, due to higher costs for waste collection, insurances and other expenses—paired with slower than expected real estate tax revenue growth—the general budget was too strained to fund the capital plan over the next five years.
“Without an influx of dollars, we wouldn’t be able to do anything in the capital program, like road paving, bridge repairs and park improvements,” he said.
Projects and purchases to be considered in the 2025 capital improvement plan include:
• Possible rehabilitation of the former municipal offices and public works garage on Millers Run Road
• Road improvement program
• Police gear; automated external defibrillators; traffic cameras
• Public Works equipment for park and field maintenance; vehicle and equipment replacements; items for maintenance buildings at Fairview and Boys Home parks
• Morgan Park signs; Fairview Park tennis court resurfacing
• Stormwater improvements
• Information technology needs
• Traffic signal maintenance; Mohawk Road redesign
Also, the township must contribute cost-sharing funds to take advantage of millions of dollars in grants secured for projects in Fairview Park.
These include construction of three new ball fields on the Mayview site, installation of artificial turf on two multipurpose fields, and creation of a sidewalk and trail network.
How much local tax money goes to the township, school & county?
South Fayette property owners pay real estate tax to three separate entities—South Fayette Township, Allegheny County and South Fayette School District. School taxes are the most expensive, accounting for 68.3% percent of a property owner's total real estate taxes paid.
The smallest proportion—15.3%—goes to the township government. The county's share is 16.4%.
South Fayette voters have elected Kevin Biber as the Real Estate Tax Collector to accept tax payments for both the township and the school district. The Allegheny County Treasurer collects county taxes.
Elected officials for each entity set their annual property tax rate. The five-member Board of Commissioners set the tax rate for the township government at 5.98 mills, or $598 per $100,000 in assessed value.
Allegheny County Council set the county rate, which is 6.43 mills.
The nine-member school board set the tax rate for the public school district at 26.7 mills, or $2,670 per $100,000.
How are township tax dollars spent?
In the $19,469,082 operating budget for 2025, the biggest areas of spending are police, public works, trash and recycling collection, and a transfer to the fund for capital projects, such as road paving, bridge repair, park improvement and equipment replacement.
