FOUNTAIN SPRINGS - Butler Township will take less from its residents' pockets for taxes in 2014 after the township supervisors formally adopted their 2014 operating budget with a 1-mill tax decrease.
The supervisors met Monday morning at the municipal building for the budget adoption with a 3-0 vote. The real estate tax millage was reduced from 11.65 to 10.65 mills. Each mill brings in about $54,000.
The decrease was possible due to the Wal-Mart Distribution Center at Highridge North Business Park ending its Keystone Opportunity Zone status on Dec. 31.
According to information provided by Schuylkill Economic Development Corp. Vice President Brian Hansbury, Butler Township is estimated to receive $154,563 in real estate taxes in 2014 from the Wal-Mart property, based on real estate tax estimates on assessed valuation and millage for 2012.
With expiration of the Wal-Mart DC KOZ status, Schuylkill County will receive an estimated $202,368, and the North Schuylkill School District will get the most taxes at an estimated $621,462. The total tax bill in 2014 for the three government entities is $978,393.
"We have the KOZ program for almost 10 years and it's designed to bring industry and business into the area and here's a situation where we get something back as a township," Chairman David Kessler said. "As I can tell you, there is almost nothing that goes down, but this is giving the supervisors an opportunity to give something back to the residents. I wish it was more, but it's something."
"Our equipment fleet is next to perfect," Supervisor Bob Burns said.
"We've upgraded equipment for the road crew, so we're in good shape there," Kessler said. "We've been very frugal and haven't spent crazily."
Kessler said the road department has four full-time employees. The township also has a 24/7 police department with four full-time officers. Along with the township, the department provides coverage to the Borough of Gordon.
The supervisors raised real estate taxes in 2013 by 2.5 mills due to $50,000 shortfall in earned income taxes not received at the time from the Central Tax Bureau of Pennsylvania, referred to as Centax, which had been hired in 2010 by the Schuylkill County Tax Collection Committee to collect earned income taxes for county municipalities and school districts. However, due to failing to process tax bills and payments, the committee in June 2012 dropped Centax and hired Berkheimer Associates, Bangor, to process the backlog of payments.
The tax hike also involved $18,000 in delinquent taxes from Saint Catherine Medical Center. Kessler also pointed out that the township paid more than $100,000 in legal fees to fight the installation of wind turbines.
"That money had to come from somewhere," Kessler said.
The 2014 budget of $1,717,945 (an increase from the 2013 budget of $1,667,343) includes the following funds and breakdown of millage:
- General fund: $1,298,566 (8.87 mills).
- Fire fund: $56,365 (0.73 mills).
- Light fund: $86,759 (1.05 mills)
- Liquid fuels fund: $246,490.
- Day care fund: $29,765.