West Chester Twp. passes $59 million tax budget for 2022: What it includes

Giant projects are not expected in West Chester Twp. next year but the $59 million tax budget trustees passed last week does include federal money officials intend to spend shoring up aging infrastructure.

The tax budget is a basic blue print for expected revenues and expenditures for 2022, it includes $45.6 million for general operations of the township including $30 million for police and fire. Officials estimate they will start the year with $45 million cash on hand.

The tax budget shows $56 million total in expenses for the general fund, special funds for safety services, roads and various tax increment financing district proceeds, versus $59.6 million in total revenues. The plan also includes $3.3 million — half the total of $6.6 million — the township was awarded in federal American Rescue Plan planning.

Finance Director Ken Keim told the Journal-News the priority for spending the windfall the township received from the federal government is to make repairs to the aging storm water system throughout the township. When he first learned about the new found cash he thought he would use it to replenish an estimated $640,000 in lost hotel tax revenue.

As more guidance has come down on what the money can be legally used to fund, he said reimbursing losses due to the pandemic isn’t as easy as it once sounded.

”They are going to tell communities what they lost,” Keim said adding he has always had to report finances to the U.S. Census Bureau and that body apparently will determine what a jurisdiction lost, based on its total receipts. “It isn’t going to be anything I can prove, that I can point to this hotel tax as what we typically got, what we did get.”

The trustees approved the first storm system project this week, $168,234 to repair several storm pipes and Trustee Ann Becker said it was a good use of the ARP funds. She said it isn’t “fancy” and nothing people will post on Instagram — unless storm sewers back up — but it is necessary.

“I think the use of this American Rescue Plan money to shore up our storm pipes is a good use of this money,” Becker said. “I still question whether or not this money should be handed out as freely as it is, I understand the thought behind it is a little frustrating but we’re using it in the right way.”

The township also received received nearly $4 million in CARES funding and allocated $3.8 million for police and fire salaries, allowing the township to extend the life of their levies. The original deadline for spending that pot of coronavirus relief funding was last December. Keim said the township has four years to obligate the ARP funds so priorities could change for the money.

Barb Wilson, director of public information and engagement, said the township grew so quickly much of the infrastructure is older, all the same age and has the potential to fail at the same time. She said they have tried to earmark replacement projects annually but this would help them tackle it in a bigger fashion.

Keim said if the census bureau comes back and shows the township suffered a big loss from the crisis, he may recommend changing course.

“Our community services director said he won’t have much trouble coming up with enough pipe that needs to be addressed,” Keim said. “If by chance they (the census bureau) come back and say you’ve had X hundreds of thousands of revenue loss this year, I will probably make another pitch to our deciders about some other potential items we could do.”

The township also has a number of tax increment financing districts that the tax budget indicates should bring in about $12.2 million in revenues to pay for $10.4 million in projects next year. The township routinely utilizes funds from the special taxing districts for major construction projects like the new Union Centre Boulevard diverging diamond interchange at Interstate 75.

There aren’t any huge projects on tap this year but trustees are exploring helping fund an addition to the MidPointe Library for a multi-use community space. A very rough estimate by Trustee Mark Welch put the cost at $3.6 to $4.8 million for a 10,000- to 12,000-square-foot addition.

Becker told the Journal-News they have a meeting with library officials scheduled at the end of the month to discuss preliminary plans the for addition. Any building project would be supported with TIF funds.

MidPointe Executive Director Travis Bautz told the Journal-News he is still waiting for plans from the architect and does not yet have cost estimates.

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