BETHLEHEM TWP., Pa. — Township commissioners on Monday authorized the proposed 2024 budget, holding the tax rate steady but increasing sewer charges.
The township millage rate will remain unchanged at 7.74 mills, which includes a fire tax at 0.15 mills. A mill in Northampton County is equal to $1 of every $1,000 in assessed property value.
But sewage charges will go up 3%.
Township officials are preparing for an increase in wastewater treatment charges from the city of Bethlehem, the township's service provider, which plans to disperse those charges across its surrounding service area.
“We feel these increases in the rate, which would be the first reading date on or after Jan. 1, would accommodate that increase. … The end user would realize three quarters at the new rate or one quarter at the old rate in 2024, and then in 2025 you’re at the new rate.”Township Finance Director Andrew Freda
Township Finance Director Andrew Freda on Nov. 21 said the property tax rate has remained fixed since 2018, but a sewage rate hike would help to offset incoming service costs.
“We feel these increases in the rate, which would be the first reading date on or after Jan. 1, would accommodate that increase,” Freda said. “ … The end user would realize three quarters at the new rate or one quarter at the old rate in 2024, and then in 2025 you’re at the new rate.”
For a general idea on what that hike could look like, a household using less than 6,000 gallons of water per quarter would see a $1.75 increase per quarter. Any use over that 6,000-gallon amount would cost $7.50 per additional 1,000 gallons past that point, as opposed to $7.27 for a previous, identical use.
Flat-rate customers would see charges go from $72 to $74.50 per quarter.
A brief budget outline
The township is listing nearly $29 million in total money available as part of its general fund, including a projected $16.27 million in taxes, over $712,000 from licensing and permitting and $61,000 in fines, forfeits and penalties.
General fund expenditures are estimated to weigh in at nearly $20.96 million. That amount includes $9.74 million in public safety spending, $2.82 million for public works and $2.21 million in debt service.
The budget is showing the sewer revenue fund as equal parts revenue and expenditures, both coming in at $6.2 million.
The township’s general balance is riding high into the new year, thanks partly to $2.5 million in federal pandemic funding, $400,000 shifted to the stormwater fund and more.
Incoming shortfalls
And some future shortfalls are predicted, according to township officials.
“Several years ago I wrote in a budget message: ‘This is the stark financial picture of Bethlehem Township… a mature, nearly built-out municipality where annual revenues have not quite been keeping up with annual expenses for the better part of a decade.’ I think this continues to be the case,” Township Manager Doug Bruce wrote in a recent budget introduction.
The year 2025 will require $600,000 in additional pension spending, and the current fire tax rate at 0.15 mills won’t cover the planned $2 million expense to purchase two near fire engines in 2026.
Officials would likely need to borrow money against that future fire tax income to cover the new trucks when that time comes.
The township manager has predicted an increase to stormwater fees in 2026 to help cover current infrastructure projects. Some of that associated construction debt is slated to begin being paid in 2025.
Reporter Ryan Gaylor contributed to this report.
