After several months of meetings and mostly public opposition, the New Garden Board of Supervisors gave approval to the township’s 2024 budget at its Dec. 18 meeting, one that offers half the financial sting to residents than an earlier submitted proposal. 

The 5-0 vote increases real estate taxes in the township by 1.05 mills, a “half increase” scenario of 62.1 percent that will see residents’ taxes increase from 1.72 mills to 2.77 mills beginning in the new year. 

According to Township Manager Christopher Himes, who gave a 45-minute summarization of the new tax structure, 80 percent of all township households will absorb an increase that will range from $4 to $22 a month. For residents who live in a home that has an assessed value of $186,000 will see their annual real estate taxes increase from $319.42 to $515.22, a monthly jump from $26.66 to $42.94.

For those living in a home with an assessed value of $400,000, homeowners will absorb a tax jump that will rise from $645.00 a year to $1,038.75, and from $53.75 to $86.56 monthly – a total increase of $393.75.

The Dec. 18 approval comes on the heels of a four-hour budget proposal meeting on Nov. 20, when after persistent and occasionally raucous public opposition, the board voted to advertise the “half increase,” which served as a compromise to the proposal Himes presented on Oct. 16, which if accepted would have placed a 3.9 millage rate on township homeowners – a 120 percent tax increase.

Himes’ presentation again glossed over the major points he made at earlier overviews of the budget, at which he said that the increase was needed to offset the township’s expenditures, which have risen from $3.7 million in 2016 to a projected $6.3 million for 2024. In addition, he said, the increase will also take a bite out of the township’s $1.8 million deficit as it heads into the new year. 

“Our expenditure growth has been significantly more, almost a three-to-one ratio, so over the course of the last decade, we have had nominal revenue growth but have had significant expenditure growth,” he said. “For the most part, this is because from 2015 to 2016, we expanded the regional entity of our police department. We had the expansion of our fire services in terms of having been the primary municipal contributor towards fire services in the township, as well as [staffing]. 

“All three of these compounding efforts have equated to roughly one-third of that total overall expenditure increase. If you itemize out all these expenditures and show them as necessary growth measures of a township that is absorbing more capacity and meeting the level of expected output, our revenues have not been able to sustain that kind of growth rate increase.”

A strategy ‘that makes sense for the township’

The positives of the tax increase, Himes said, will add to the township’s much-needed tax revenue growth, fill a sizable plug in the township’s deficit; empower its general fund for 2024; and serves as a flexible option to reassess the township’s tax structure moving forward from year to year. 

“At least for year one, this is a strategy that makes sense for the township,” Himes said. “This is a flexible option [we can use] to reassess next year’s budget. There is a growth path where we have interest income and a solvent balance of cash that allows us to be able to support multiple different components, not only of our general fund but our capital fund.”

In the context of the tax increase, Himes again specified that the township’s key goals will be to  balance its budget; leverage its fiscal strengths; fund critical capital projects such as road paving, making improvements to the Township Building and investing in stormwater projects; increase the number of township staff and streamline responsibilities; achieve a return on investment on the township’s capital projects; and continue to address budgeting inefficiencies.  

Himes continued to emphasize the township’s need to create a sustainable growth model; finding methods of collaborating with other agencies regarding public safety; reassessing the township’s capital priorities such as open space and land acquisitions; and investing in economic development that will make the township more attractive for future businesses to establish operations there.

Calls for public involvement

While public comments to the budget were not as vehement or as large in number when compared to the Nov. 20 meeting, it was likely due to confusion stemming from the township’s announcement earlier in the day that the Township Building had closed due to a power outage, and the assumption that the meeting would be rescheduled. Nonetheless, two residents in attendance continued to press the supervisors for answers and called for the township to enlist the help of its residents on the creation of future budgets.

“How can we move away from the presumption that taxes need to be raised?” said Harlow Pointe resident Clair Aiello. “Wouldn’t it be better if we can find creative ways to reduce expenses and generate revenue, so our taxes do not need to be increased? With that said, we appreciate that you have an interest in working with us. How do we move forward to do this? 

“We have a group from some of the largest communities in our township who are willing to work with you.”

Himes recommended that the residents appoint a representative from each homeowners’ association to potentially provide guidance and steerage for future budgets.

Thirty-year township resident Ron Smyser provided the supervisors with a document that reflected his concern for the potential impact of the national economy on the township and urged the board to work with residents.

 “When you say that we’re going to have a 120 percent increase in taxes, you get attention,” he said. “When you drop it back to 60 percent, you’re making a fool of yourself, because it sounds like a game. It’s extremely important that we get taxpayers talking with you all in some way that it becomes a positive contribution.”

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