South Fayette Connect - Winter 2024 - Volume 9, Issue 1

Page 28

Police Department 28%

How are township tax dollars spent?

Public Works 18%

In the $16,956,211 operating budget for 2024, the biggest areas of spending are police, public works, solid waste collection and debt service for facilities. Garbage and recycling services are rising by about 40% ($450,000)—a 12% share of the total budget, compared to a 9% share in 2023. In the years 2025 through 2028, the cost of waste collection will rise by another $600,000 total. Infographic by Andrea Iglar Percentages are rounded

Township tax rate holds steady Waste collection costs strain 2024 budget in South Fayette By Andrea Iglar South Fayette Township has adopted a $16.95 million operating budget for 2024 with no tax increase. The township property tax rate remains at 4.73 mills, equivalent to $473 per $100,000 in assessed property value. For a home valued at $164,000—the median property value in South Fayette, according to Allegheny County—the township tax bill is about $776 annually. Township tax revenue funds numerous public services, such as trash and recycling collection, police, roads, snow removal, parks and recreation, stormwater management, code enforcement, planning and zoning, building inspection, communications and more. Township Manager John M. Barrett said trash and recycling collection is the largest strain on the 2024 budget. “Waste Management is the biggest increase across any service area,” he said. The new five-year contract with third-party hauler WM (Waste Management officially has shortened its name) raises costs by 40 percent this year, with annual increases to follow. Barrett said the township is able to absorb the expense this year because of development growth and sound fiscal management, but the strain doesn’t allow a surplus to help fund capital projects. “The general fund is healthy enough that we can sustain 26 |

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this increase and not raise taxes, but what we’re seeing in 2024 is the additional money for capital projects is just not there.” Capital improvements involve public assets such as infrastructure, facilities and equipment that have a useful life of at least 10 years. Even so, at least $1 million in road paving and certain park improvements will be able to move forward due to existing savings, grants and other monetary sources. Another challenge is a decline in revenue from the real estate transfer tax. Last year, the revenue projection fell short by about $500,000. “We believe the higher interest rates for mortgages caused the real estate transfer tax to slow, and we expect that to continue, so that’s another strain on the budget,” Barrett said. The budget also is absorbing higher operating expenses in the newly built municipal center—including the police station, township offices and public meeting chambers—while continuing to sustain parts of the former municipal building on Millers Run Road for the South Fayette Township Library and South Fayette Area Senior Citizens Association. The budget includes an increase of $7,000 each for the library, SouthBridge EMS and each of the four volunteer fire departments in South Fayette. Details: southfayettepa.com/budget.

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South Fayette Township

@SouthFayettePA

@SouthFayettePA


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