Swarthmore will implement an emergency service tax after successfully avoiding an income tax.

Swarthmore Borough has initiated a critical measure to secure funding for its emergency services as it grapples with budgetary constraints and escalating service costs. This week, the borough council approved the establishment of an emergency service tax (EST), a targeted property tax intended exclusively for emergency services, during its recent council meeting.

The decision to implement the EST follows the borough’s previous consideration of an earned income tax, a proposal that met significant resistance from residents and some council members. In light of these challenges, a contribution of 8,000 from Swarthmore College earlier this month helped address part of the budget shortfall. However, additional revenue remained essential for maintaining the quality of emergency services, as highlighted by borough council member Kristen Seymore.

Under the newly approved tax, the millage rate will be set at 0.45 mills. For homeowners whose properties are assessed at the average value within the borough, this translates to an expected increase of approximately to per month on their property tax bills. A millage rate operates by assessing a charge for every ,000 of a property’s value, which tax collectors utilize to determine property tax obligations.

The financial landscape of Swarthmore has altered dramatically following the recent closures of key medical facilities, such as Crozer-Chester Medical Center and Taylor Hospital. This situation has exacerbated the borough’s fiscal challenges, as rising emergency service costs coupled with diminished tax revenues have strained its budget. Council members have expressed concern over the implications of these shifts for community safety.

Following these healthcare facility closures, the borough declared a state of emergency in April, which prompted a reevaluation of its financial strategies. As emergency service costs have surged, leaders within the borough have indicated their intent to retain essential community services rather than reduce them.

Legally, municipalities are permitted to levy a maximum of 0.5 mills for emergency medical services, and 3 mills for fire services. Swarthmore’s EST will be just under the cap for emergency medical services. In light of the pressing need for funding, state lawmakers are currently considering new legislation that would expand the emergency service tax limits for more municipalities, aligning them with the provisions offered to first-class towns last year.

Efforts are ongoing to modernize Swarthmore’s emergency services funding framework, with potential considerations for collaboration with nearby municipalities to pool resources for such services. As the borough also contemplates additional fiscal pressures from potential property tax increases at the county level, the introduction of the EST signifies a crucial step toward safeguarding public safety and ensuring the viability of critical services.