For 31st straight year, Hempfield supervisors approve budget with no tax increase

Hempfield supervisors unanimously approved a $13.5 million budget that does not raise real estate taxes for the 31st consecutive year.

The approval, which took place at Monday’s meeting, came after months of cutbacks and planning to make up for lost expenses because of the coronavirus pandemic. Revenue streams such as earned income tax, real estate tax, building permits and recreation fees decreased throughout the year because of economic impacts as covid-19 spread across the region.

In April, Melanie Phillips, director of finance, suggested freezing part of the budget, saving the township $750,000. Still, by August, the township was facing an $800,000 deficit. Earlier this year, township leaders predicted Hempfield could see up to $1.4 million in lost revenues for this year, as well as an additional loss of $1 million in 2021.

Budget documents created by Phillips suggest the general fund still might fall short of meeting goals and expectations of 25% of the annual operating expenses this year. That could carry over to next year unless casino revenues from the newly opened Live! Casino Pittsburgh exceed projections.

To account for the possible deficit this year, several departments decreased their budgets, including general government by $315,000, emergency management by $6,100, public works by $552,472 and parks and recreation by $58,398. Included in that, the budget for salt purchases was decreased by $100,000 based on recent historical data.

“We finished the 2021 budget this year, and it was a challenge. 2021 into 2022 is going to be a bigger challenge as well, more so than we have any idea,” Supervisor Rob Ritson said. “I just want to say I thought the manager, the finance director did a great job.”

During Monday’s meeting, supervisors also approved a $2.2 million capital budget that includes a new code and permitting platform, equipment replacement for the fire service and park improvements. Funding for projects included on the budget will come from grants (44%) and capital borrowing (56%).