John Mack - Newtown Supervisor
2020 Estimated Real Estate Tax Revenue & Expenditures

2020 Estimated Real Estate Tax Revenue & Expenditures

Newtown Township's Real Estate tax millage Definition is composed several components dedicated to specific funds or projects. These are (1) 2.625 mills for debt services purposes (to pay off loans for road improvements, and other projects), (2) 0.875 mills for fire protection (Support for the Newtown Fire Association, Fire Chief’s salary, health insurance, etc.), (3) 0.55 mills for fire hydrant maintenance, and (4) 0.45 mills for the Newtown Ambulance Squad. 0.0 mills are collected for "general" purposes. Thus, residents know exactly what they get for their real estate taxes.

For an average Newtown Township home assessed at $40,000, the yearly real estate tax is $180 (4.5 millage X $40,000/1,000).

According to the 2020 Preliminary Budget (here), the total Real Estate Tax Levy for Newtown is estimated to be $1,558,345 based on a total assessment of real estate assets of $346,298,840 (see table and chart below).

Numbers from 2020 Preliminary Budget, Schedule A

Debt Service Tax for Town Center & Roadwork

The township is paying off a general obligation bond for the construction of the town center and a $1 million loan for the paving of roads. The total expenditure for those two items is $1,012,160 (see page 19 of 2020 Preliminary Budget).

Approximately 5.5 miles of roads will be repaved in 2020 thanks to $686,194 to be received from the 2020 State Liquid Fuels Program Definition and the aforementioned $1 million loan, which will be paid back over the next 3 years.

According to the September 20, 2018, "Preliminary Report on Newtown Township’s Municipal Finances" prepared by the Newtown Township Finance Committee, the current tax millage dedicated for repayment of the township building construction annual debt service will "not meet mandatory increased yearly payment amounts possibly as soon as 2020. The dedicated millage rate will need to be increased or supplemental revenue found" (view the video of the presentation of that report here).

Fire and Rescue Squad Taxes

The revenue collected via the Fire Tax will cover the $175,000 that the township gives to the Newtown Fire Association plus pay for the Fire Chief's salary and benefits and other fire-related expenses. The $185,000 Fire Hydrant Tax pays for fire hydrant maintenance by the Newtown Artesian Water Company.

Last, but not least, is the Rescue Squad Tax, which pays for the $151,000 that the township pays to the Newtown Ambulance Squad (NAS). You may recall that in October, 2017, Evan Resnikoff, NAS Chief of Operations, asked the Supervisors implement an EMS millage of 0.5 mill, which would generate about $172,000 of funding for the squad (see the video here). The Supervisors went on to approve the current 0.45 mill tax.

Posted on 22 Nov 2019, 11:08 - Category: Finances

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