Cheltenham Township, already facing the challenge of being the most tax-burdened municipality in Montgomery County, has unveiled a proposed budget for the coming year that includes a notable property tax increase aimed at addressing a projected structural deficit. Under this draft budget, the township portion of property taxes is expected to rise by approximately 20%, which translates to an estimated increase of for the average homeowner’s annual tax bill. This estimate reflects the elimination of a stormwater fee, previously ruled by the state Supreme Court as an illegal tax. The average combined property tax and stormwater fee bill for this year stood at around ,762.
Despite the cancellation of the stormwater charge, which averaged 0 per homeowner, the effective tax increase results in a net rise of about 5%. Commissioner Board President Matthew Areman pointed out in a recent budget presentation that the majority of property taxes collected by Cheltenham are allocated to fund local school districts, indicating that the township’s tax increase would only marginally impact residents’ overall tax bills.
Officers within the township have indicated that ongoing financial struggles stem from a limited commercial tax base, a high presence of tax-exempt land, and the financial commitment to lifetime health care benefits for retirees. The township’s policy regarding these benefits was restricted following staff union contracts established after 2013, yet approximately half of the spending allocated for staff health insurance continues to support retirees, according to Areman.
In a bid to manage its financial obligations, Cheltenham Township previously voted to sell its sewer system to a private entity in 2018, which now also provides the town’s drinking water. A proposed 20% increase in taxes could leave the township facing a deficit of about 3,000 for the year 2027, although projections indicate a potential surplus by 2028.
Moreover, discussions concerning potential cuts to library funding and reductions in planned allocations for fire departments are no longer under consideration in the draft budget. Instead, the budget retains the planned funding increase for these fire companies, which will focus on recruitment and retention efforts.
The finance committee is set to determine on November 10 whether to proceed with the proposed draft budget, which will subsequently require approval from the commissioner board by November 18. Following this process, the preliminary budget will be made available for public inspection by November 23, with a final vote scheduled for December 16. This budget is positioned as a reflection of the community’s priorities and a strategic roadmap for the township’s operational plans for the upcoming year.
As Cheltenham Township navigates these fiscal challenges, it remains committed to addressing residents’ needs while seeking stability amidst financial constraints.
This information is reported by Media News Source.