Millcreek PA Township Officials OK Volunteer Firefighter Tax Credit

Millcreek Township supervisors on Tuesday passed a 2019 budget that leaves tax rates unchanged and approved a tax incentive program for volunteer firefighters.

The $21.7 million operating budget projects a $576,018 deficit, but that shortfall will be balanced by the township's $8.9 million beginning cash balance. It includes contracted wage increases for township employees, including 3 percent pay increases for police and 2½ percent raises for public works and sewer maintenance employees.

Also in the budget is $300,000 for Millcreek's share of costs to extend a multipurpose trail at Presque Isle State Park to the Tom Ridge Environmental Center, a project that is part of Millcreek's multi-year comprehensive plan Embrace Millcreek. Another Embrace Millcreek recommendation receiving funding in the new year will be a $150,000 update to the township zoning code.

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Supervisors cautioned that despite being on sound financial footing now, the township will be forced to deal with difficult decisions between 2020 and 2023, when there will be a need to raise taxes, find new revenue sources or cut costs.

"It's a good budget, no tax increase," Supervisor John Groh said. "I'm not sure how much longer we can do that because we're running pretty thin."

Supervisor James Bock said the budget was helpful because for the first time it includes five-year financial projections.

"Rest assured," Bock said, "we're going to be monitoring expenditures throughout the calendar year to make sure we're on track."

The budget covers expenses for administrative, public safety, code enforcement, parks and recreation, and planning and development services.

Supervisors on Tuesday also unanimously approved a new tax incentive program for volunteers who serve with the township's four fire departments.

The tax incentive program will provide qualified volunteers a credit of up to $1,000 toward their earned income taxes and a discount of 20 percent off of their township property taxes annually.

The incentives are possible because of a 2016 state law that allows municipalities to offer such incentives to volunteer emergency workers. Solicitor Mark Shaw said the 20 percent credit toward property taxes is the maximum allowed by law and that the $1,000 credit toward township income taxes is "on the high end of what we've seen across the state."

To be eligible, volunteers must respond to emergency calls, take part in drills, attend department meetings, perform traffic control duties, among other tasks. They would earn one point each time they participated. The ordinance requires volunteers to earn a minimum of 150 points each year to qualify for the incentive.

Though supervisors have said that the tax credit might not help the volunteer fire companies attract new firefighters, they noted that it could help retain current volunteers and, at the very least, serve as a token of the township's appreciation for the work they have performed.

"This is the step in the right direction," Groh said. "It's not a complete solution, but it at least shows our gratitude.

Bock said the point system used to determine the eligibility and size of the credit will keep volunteers engaged.

"It's a good acknowledgement of their efforts," he said.

Supervisors on Tuesday also handled several issues to finalize the transfer of the sanitary sewer system from the Millcreek Sewer Authority, which will be dissolved, to the township. Supervisor John Morgan said the transition for customers should be flawless because rates are staying the same and billing will continue to be handled by Erie Water Works.

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