South Fayette Township is proposing a $19.3 million budget for 2025 with a property tax increase of 1.25 mills, the first tax rate adjustment in seven years.
The rate would increase from 4.73 mills to 5.98 mills, resulting in an additional $125 per year for each $100,000 in home value.
For the median assessed home value of $163,900, the township tax bill would increase from $775 to $980 a year.
The township Board of Commissioners will consider advertising the proposed 2025 budget during its meeting on Wed. Nov. 13 at 7 p.m. and will adopt the final budget in December.
The five-member board has explored various options, including possible fees, to alleviate inflationary pressures and cover higher costs for everything from utilities to waste collection. The board ultimately found that a tax rate adjustment would be the most fair, equitable way to right-size revenue.
Board president Chuck Lazzini said commissioners held three budget workshops and examined every line item, making cuts that would not reduce or negatively impact services to residents.
“This isn’t something we want to do, it’s something we need to do to,” Lazzini said. “Due to big-picture economic headwinds, we need to be responsible and not put the township in a poor fiscal position.”
The tax increase is expected to generate an additional $2.1 million next year.
One reason the township needs additional revenue is to offset the 5-year, $12 million waste collection contract. The 2024-2028 contract cost represents a 58% cost hike compared to the prior five years. (Residents are not directly billed for basic waste collection; the township pays for the service through tax revenue.)
Also, the township needs to secure consistent funding for capital projects related to roads, bridges, facilities and other infrastructure.
This would be the first real estate tax adjustment since 2018, when the rate increased by 0.25 mills. In 2016, the rate had increased by 1 mill.
The commissioners set the tax rate for the township, which provides local government services such as police, roads and waste collection.
South Fayette taxpayers pay separate rates and bills to the South Fayette School District (26.7 mills in 2024) and Allegheny County (4.73 mills in 2024).