Solebury Township property owners would see no increase in their overall real estate tax rate next year under a proposed 2027 budget that shifts the existing tax levy toward operations and future projects as the township pays down its debt.
The township’s total real estate tax rate would remain at 25.9102 mills under the draft spending plan presented Tuesday night. Administrators proposed changing how the mills are divided among township funds, rather than a rate increase.
Advertisements
General Fund millage would increase from 8.45 mills to 11.04 mills, while the levy for debt service would decline from 13.129 mills to 10.50 mills, per the presentation. The Fire Fund would increase slightly from 2.5 to 2.52 mills and the library levy from .541 to .56 mills. The EMS levy would remain at 1.2902 mills.
“In the 2027 budget, we are happy to say there is no tax increase,” Assistant Township Manager and Finance Director Michele Blood said during the presentation. “The tax millage will remain at 25.9102%.”
The shift is possible because Solebury’s annual debt payments are declining and are expected to be paid off by 2030, Blood said.
Advertisements
“We took it away from debt service, put the additional monies into the general fund, which then allowed us to transfer out money into capital projects, capital reserves, the sustainability funds, things like that,” Blood said.
Supervisor Kevin Morrissey said the maneuver may have helped the township avoid having to choose between higher taxes and drawing down reserves.
Advertisements
“If you hadn’t done that, we would’ve been looking at a tax increase,” Morrissey said.
“Or taking from reserves,” Blood responded.
The draft budget projects about $15.2 million in total township revenue in 2027, up from about $14.5 million projected for 2026. Officials cautioned that part of the increase comes from grants associated with specific projects rather than underlying growth in recurring tax revenue.
Advertisements
The General Fund anticipates collecting $4 million through the earned income tax, $850,000 through the real estate transfer tax and about $2.66 million in current-year real estate taxes. Solebury’s 1% earned income tax is split evenly between the township and New Hope-Solebury School District.
Blood said real estate and earned income tax revenues have remained relatively flat while the cost of maintaining township services continues to rise.
“This is the challenge that we have in meeting all of our operating expenses,” she said.
The General Fund operating budget is about 2.4% higher than in 2026 before transfers to other funds, officials said. The township expects to finish the proposed budget about $91,000 in the black.
Blood said the General Fund would spend about $9.4 million on operations, compared with about $8.5 million in 2026. Police account for the largest portion at about $3.8 million.
The township is also preparing for rising costs. Officials cited uncertainty surrounding fuel, interest rates, vehicles, asphalt, employee compensation, emergency services and other goods and services. Healthcare costs came in 7.2% higher, although the township expects its budgeted increase to be held to 6% after savings through its insurance arrangement.
Meanwhile, the township’s five-year capital plan totals about $19.1 million, including about $4.5 million anticipated for 2027.
Projects in the draft budget include more than $1.1 million for Solebury Green and Circuit Trails work, $500,000 for a Sugan Road sidewalk extension, $150,000 toward the Lake Solebury master plan, about $642,000 in tentative Bond House improvements and continued design work for improvements at Route 202 and Aquetong Road.
Officials said grants will remain important as those projects move forward. Solebury has received about $2.77 million in grants this year, and the township only counts grant revenue in its budget after an award has been made.
The township also maintains a General Fund reserve equal to between 25% and 50% of annual expenses, generally between $2 million and $4 million. Excess funds have been transferred into capital reserves and projects, while a separate operating reserve was established to provide money for emergencies such as flooding or a bridge failure without putting additional pressure on the General Fund.
Officials said the draft budget would continue the township’s existing level of services while directing more money toward future capital needs.
The proposed budget remains subject to change. Supervisors are expected to review it again Nov. 5 before a final spending plan is advertised for adoption Dec. 8.
