Upper Darby’s 2025 municipal budget is projected to be $101.6 million, officials say.
With the end of the year approaching Chief Administrative Officer Crandall Jones reviewed the preliminary budget with council members at last week’s meeting.
Jones said $3.3 million in federal American Rescue Plan Act funds will be added to close the budget gap for 2024 but that source of funds will not be available in the coming year.
Crandall Jones
With the recently enacted earned income tax, the budget, which will be balanced but increased 14.5% from 2024, with those additional EIT funds needed to offset rising insurance rates and to allow the township to rebuild their reserves.
Jones said the township is looking at a 16% increase in health care costs and they are looking at lower cost options.
He said the township has a “Cadillac program” and needs to take some serious looks at what can be done in terms of finding similar but lower cost opportunities.
Jones said contract negotiations with the police are going well and they are beginning talks with two of the other unions. For the year, officials are estimating a 3% increase for employees.
Jones said on the revenue side, real estate revenue may be lower due, he believes, to lower than anticipated collectability and reassessments that are bringing down revenues.
Other taxes are doing better.
A 2023 audit showed what Jones said was typical in government: 75% of costs being personnel with operating costs just under 23%.
With the inclusion of the EIT, the township is looking at a $5.1 million excess to start building up the reserve for the township.
There will be no ARPA funding in the next budget but an increase in state aid. Increases in trash fee and other charges will bring in about $500,000 more.
Officials said operating costs will increase by 15.7% and include information technology costs for implementation of new systems for license and inspections as well as for payroll as well as hardware improvements and third-party contractor increases.
With the budget for five new police officers, equipment and vehicles is an additional $338,000 as well as increases in the HUD budget, EIT collection service, staff development and library support.
Debt service is projected to be $2 million for 2025.
The sewer fund will include a $5 increase and the trash fee will increase $10.
Public hearings on the budget will be Nov. 13 and Nov. 20 at 6 p.m. before the regular council meeting, and the expected vote on the final budget would be Dec. 4.
One resident criticized paying a reported payment for the IT program, saying it included $1,300 in state tax, when the township is tax exempt. Jones said they did not pay the sales tax despite what it said on the invoice.
“We do routinely make sure we use our tax exempt certificate,” Jones said.
He also answered a question about a drone, purchased in a past administration, saying that was being used in the recreation department.
Jones said the township is working on improving and publishing the correct fee schedule. It is working to make the fee updates consistent with other municipalities. Jones said in the past that fees weren’t published, creating confusion.