As Kennett Township begins to prepare its 2024 budget, Finance and Human Resources Director Amy Heinrich presented the Board of Supervisors with a rough draft of the township’s projected operating budget for next year at the board’s Oct. 4 meeting – which is estimated to be $8.9 million in revenue and $7.7 million expenses.

In her forecast, Heinrich said that the township’s anticipated revenue for next year will mostly come from $6.54 million in earned income, local service, real estate and real estate transfer taxes, and an additional $2.4 million in fees, fines, grants and interest. She said that the township is expected to see a surplus this year in the amount of $1.2 million, which she recommended be transferred into next year’s capital budget. 

The operating expenses for next year -- projected to be $1.2 million higher than 2023 – are due to increases in the township’s membership to the Fire & EMS Commission, which will see a 41 percent increase in 2024; a $260,000 one-time cost for the construction of the Magnolia Crossing project; and $143,000 that will be needed to hire two additional staff and appointing a part-time staffer to full-time status in the Public Works Department. In addition, the township projects additional expenses in its Finance and Human Resources, Planning and Zoning departments. 

On the expense side, the township’s police department is projected to account for 32 percent of operating costs for 2024 – about $2.4 million, Heinrich estimated -- with Fire & EMS accounting for 20 percent and Public Works anticipated to account for 13 percent of expenses. 

“I know it is hard when we talk about increases, but these are all public-facing departments who provide direct services to the community and they cost a lot of money, and unfortunately they have gone up in cost recently,” Heinrich said. “It will be up to the supervisors’ discretion as to whether or not we have a tax increase as a way to increase our gap between revenue and expenses.”

Board Chairman Geoffrey Gamble brought up a lingering issue during Heinrich’s presentation – the potential impact of the township’s contribution to the Fire & EMS Commission should Kennett Borough remove itself from being a contributing member of the Commission beginning in 2024 – which Kennett Borough Council has made known it wishes to do to save money. Currently, the township accounts for 30 percent of the Commission’s operating expenses -- the largest of the six participating municipalities – and its 2024 contribution will increase to $1.4 million, a $409,000 increase over 2023. 

“If the Borough opts out, obviously we will need to make up the difference from the remaining five townships,” Gamble said.
Township Manager Eden Ratliff said that at a recent Commission meeting, it was decided that representatives from participating municipalities were recommended to discuss potential cost increase ramifications with their colleagues. Ratliff said that a final decision is expected to be reached soon.

The township will dedicate a portion of its Oct. 18 board meeting to discussing the township police department’s 2024 budget and the township’s operating and capital budget. Next year’s budget – and a determination of the 2024 real estate millage rate – will be on the agenda at the board’s Nov. 1 meeting, and final budget approval is expected to be reached at the board’s meeting on Dec. 6.

To contact Staff Writer Richard L. Gaw, email [email protected].