UPPER MILFORD TWP. — Fire company costs are rising — and Upper Milford Township is looking to raise taxes to meet them.
At the township supervisors' meeting Thursday, officials agreed that a tax increase was needed, but were unsure whether it was going to take the form of a general property tax increase throughout the township, or the creation of a new fire tax.
"We have to raise taxes one way or the other because we have to come up with the money. No one had any idea these fire trucks would increase in price so much in just a few years."Supervisor Daniel Mohr
"We have to raise taxes one way or the other because we have to come up with the money," Supervisor Daniel Mohr said.
"No one had any idea these fire trucks would increase in price so much in just a few years."
Upper Milford has two independent volunteer fire departments, the Vera Cruz Fire Department and the Western District Volunteer Fire Department in Zionsville.
Both had representatives at the meeting, concerned about meeting rising costs.
"There's been a lot of discussion — some good, some bad — but in the very end, they're trying to look out for the very best for us," said Kevin Kleinsmith, financial secretary and volunteer firefighter with Upper Milford Western District Volunteer Fire Company.
"But it's a long process. It's tough to rely on them because we were used to being self-sufficient all these years, but we just can't raise the money like we did before."
Kleinsmith said that in addition to rising costs, donations still are down from before the coronavirus pandemic.
That has left the fire company trying to make up about half its budget via grants. He said his department is looking at significant costs related to a new fire truck and a new building.
"Our new truck is similar to what Alburtis has gotten [in recent years], $800,000 compared to $1.4 [million]," Kleinsmith said.
"The cost of us to buy supplies, the cost of us to replace equipment, hoses have gone up 60 percent in the last three years, so everything is just costing way more."
Currently, he said, the township grants each fire department $35,000 for general expenses while setting aside $88,000 a year for major expenses.
First step
Township staff said the first step needed would be to decide whether the general tax increase or fire tax should be pursued.
A fire tax would restrict the funds to specific purposes, while the general tax increase would allow for greater flexibility for the township to use the money.
Township staff encouraged the creation of a fire tax for simplified accounting.
"All these increases, we're talking a lot of money."Supervisor Angela Ashbrook
In response to Supervisor Angela Ashbrook's concern about accountability with the funds, solicitor Marc Fisher said an ordinance was being drafted to regulate the funds that would be generated from such a tax.
"All these increases, we're talking a lot of money," Ashbrook said. "If we are not the ones fully handling this money through the office, I'm concerned that we're handing it over to people who are not accounted for correctly."
Neighboring Macungie is facing higher fire company bills as well, following the swap to coverage by the Lower Macungie Fire Department last year.
That was done as a result of a lack of confidence in the financial management and response ability of the borough's local volunteer fire company.
Mock budgets show potential hike
A set of mock budgets was presented to the board by township staff that included a fire tax of at least 0.5 of a mill, with a 10-year outlook.
They were preliminary and speculative, and the full mock budget has not been shared with the public.
The township now collects 0.45 of a mill and a $52 local services tax from residents, who also pay taxes to the East Penn School District and Lehigh County.
"You're looking at what we already do, just removing it."Township Secretary and Treasurer Jessi O'Donald
The township also has a 0.638% earned income tax.
Officials say 0.311 of the 0.45 of a mill rate currently is used for the fire company, with the remaining 0.139 of a mill for the general fund expected to remain intact if the rest moves to a new distinct fire tax.
New total property tax millage would be 0.639 under the speculative increase.
"You're looking at what we already do, just removing it," township Secretary and Treasurer Jessi O'Donald said.
"And your increase there is, instead of $88,000 per year for capital fire, you'd be at $136,000 per year for capital fire" funds.
Township staff at the meeting said that would amount to a typical household spending $125 out of $159 in newly raised property taxes to be used toward the local fire departments.
The budgets anticipate the purchase of two fire trucks.
Fire department leadership at the meeting raised some concern of volunteers having to pay the tax and the potential for a fire tax reducing the amount they would be able to solicit from residents.
Staff noted that like the current general fund tax rate, a fire tax rate could be changed before the passage of future budgets, if enacted.
Supervisors and staff appeared to lean toward creating a fire tax, but held off on establishing a direction. They requested another sample budget with an increase in the general fund displayed, comparing it with a new fire tax.
