Cheltenham proposes 20% tax increase
Average homeowner bills will rise by $89 next year as the township seeks to cover a growing deficit while maintaining fire department funding.
By Pedro Tanaka ·
The average homeowner in Cheltenham Township will pay $89 more in property taxes next year under a proposed budget increase of 20 percent. Township officials presented this draft plan on Wednesday to address a structural deficit in local finances. The township is currently the municipality with the highest property tax burden in Montgomery County. Commissioner board president Matthew Areman stated that the effective tax hike is closer to 5 percent once the elimination of the stormwater fee is factored in. The Pennsylvania Supreme Court ruled this year that the stormwater fee was an illegal tax. That fee averaged $220 per year for local residents. The average combined bill for property taxes and the stormwater fee this year was $1,762.
Officials attribute the township’s financial strain to a small commercial tax base and a high proportion of tax-exempt land. They also cite the cost of lifetime healthcare benefits for retirees. Areman noted that roughly half of the township’s spending on staff health insurance goes toward these retiree benefits. The township began limiting these benefits for new hires after 2013 under staff union contracts. In 2018, the township sold its sewer system to a private company named Aqua to help pay off debt. Aqua also supplies the town’s drinking water.
The draft budget retains a planned $200,000 funding increase for the township’s four volunteer fire companies. These funds are designated for recruitment and retention efforts. Officials considered alternative cuts that would have slashed $100,000 from the library budget or halved the fire department increase. A library cut would have required staff layoffs and reduced weekend hours, according to a township budget slide. Areman said the budget reflects the community’s priorities and serves as a work plan for the coming year.
A 20 percent tax increase would still leave a deficit of about $223,000 for the 2027 fiscal year. Township projections show a surplus would be reached by 2028. The finance committee will vote on whether to adopt the draft budget on November 10. If approved, the commissioner board will consider it on November 18. The preliminary budget will be available for public inspection online by November 23. A final budget vote is scheduled for December 16.
