Dec 20, 2016 3 min read

As anticipated, Peters Township’s real estate tax rate for 2017 is 1.522 mills.

Township council voted unanimously Monday to approve the rate and to adopt the municipality’s 2017 operating budget, which calls for $19.03 million in revenue and $23.19 million in expenditures.

“Yes, there is a gap between the amount of money we’re spending and the amount of money we’re taking in,” township manager Paul Lauer acknowledged. “It’s going to create a challenge for us, in terms of monitoring the budget as the year goes on.”

He noted as major expenditures the purchase of a new aerial truck for the township fire department, at more than $1 million, and continuing plans for development of a new park at the former Rolling Hills Country Club property on East McMurray Road.

Lauer plans to meet with department heads to discuss potential areas of savings, but he told council that a property tax increase is likely for 2018.

The 2017 rate is significantly lower than the current 13 mills because of Washington County’s first property reassessment in 35 years. As part of the overhaul, property now is assessed at 100 percent of its market value, compared with the long-standing 25 percent.

According to information available on the county’s website, “initial reassessment property values” in Peters Township increased from $346.8 million to $3.110 billion, or nearly ninefold.

“The intent of this millage rate is to put the township in a position not to realize a windfall,” Lauer said, “but simply to be in a position to collect the same amount of property tax that we would have received had there not been a reassessment.”

He said the 2017 figure represents a best guess.

“The aggregate assessment for Peters Township is a moving target, and appeals are coming in every day to court. So what the ultimate aggregate assessed value of Peters Township will be is something that will change,” he explained, noting that the scope of appeals of commercial property assessments remains unknown.

Meanwhile, the revenue generated by earned income taxes apparently has plateaued, a situation that Lauer linked to a regional downturn in the energy industry. He cited a decrease of about $95,000 in receipts from the top 10 income-tax payers in the township.

“I think until the oil and gas industry turns the corner, it’s going to be a challenge,” he said. “And that’s why earned income tax receipts for next year are budgeted to be flat from this year.”

The 2017 budget calls for a total of $5.55 million, making earned income tax the township’s top source of revenue. Real estate taxes are expected to bring in $4.45 million.

Public works, at $6.57 million, and public safety, $5.83 million, represent the largest expenditures.