Marshall Township budget for 2021 keeps tax rate, level of service intact

Despite projections that revenue from some taxes are likely to dip next year, Marshall Township’s 2021 budget avoids a tax increase and focuses spending on projects that would cost more in the long run if delayed.

The more than $8.6 million general fund budget unanimously approved this month is about 7.8% less than this year’s spending plan to account for the anticipated loss of revenue because of the coronavirus pandemic.

“The true financial impact of the pandemic remains unknown,” manager Julie Bastianini wrote in her budget address to the board of supervisors. “The township’s largest revenue source, earned income tax, is about 8% behind 2020 budget projections.”

The job losses caused by the state-mandated shutdown to slow the spread of the coronavirus impacts the earned income tax, which is a 1% levy the town imposes on earnings.

Revenue from the tax is split with the North Allegheny School District.

This year’s receipts from the tax are expected to be about $300,000 less than in 2019.

The $3.26 million the township expects to collect from the earned income and other taxes paid by workers and businesses will fund 51.9% of next year’s budget.

The property tax, which will fund 28% of the budget, is expected to generate about $2.4 million.

The 1.42 mill tax on property — 1.21 to finance township operations and 0.21 mills to fund the fire department — means the owner of a property valued at $200,000 will continue to pay $284 a year to fund township operations and the fire service.

A mill equals $1 for every $1,000 of a property’s assessed value.

The township also will use nearly $4.53 million in unspent money from 2020 to balance the 2021 budget.

Bastianini said several measures were taken in 2020 to shore up the township’s finances because of the the pandemic’s effect on the economy.

“The board of supervisors made decisive and prudent financial decisions in 2020 to reduce spending without sacrificing the quality of service,” she said.

Some of the measures include refinancing bonds, which yielded a $250,000 savings this year and will save $15,000 in 2021.

The township also eliminated several positions to save money that will be used to provide employees with a cost-of-living raise.

Revenue from the state is also expected to decrease next year.

The 2021 spending plan anticipates the township will receive about 9% less from its share of the gasoline tax and 5% less from the state to help pay for employee pensions.

Despite the economic uncertainties, Bastianini said there is money in next year’s budget to maintain services and keep on top of major projects.

“The 2021 budget focuses on items that would create deferred costs to the township if not addressed,” she said.

The $3.28 million earmarked for the public works department, which represents 38.2% of the budget, includes $1 million for road paving, $868,000 for traffic signal improvements and $200,000 for snow removal.

The township also has budgeted $540,000 for improvements to the northern portion of Spang Road as well as $80,000 for restrooms at Knob Park.

Police and fire services account for 26.5% of the budget and will receive nearly $2.8 million in funding. Of that amount, $1.49 million will go to the Northern Regional Police Department.

The Marshall Township Volunteer Fire Co. will get $422,827, and $365,839 will go to the township’s zoning department, which is responsible for conducting inspections.

“While the 2021 budget is reduced 8% from the 2020 budget, Marshall Township resident can expect the same level of service they have come to anticipate from their local government,” Bastianini said.