Lower Makefield Township is providing residents with information about potential approaches to address the longstanding structural deficit in the Township’s General Fund, its primary operating fund. The General Fund supports many of the Township’s essential day-to-day municipal services and operations.
A structural deficit occurs when recurring revenues are insufficient to support recurring expenditures over time. Addressing this challenge is important to maintaining the Township’s financial stability and its ability to continue delivering services to residents.
The Township is discussing three potential approaches to address this issue.
1. Petition for Authority to Increase the General-Purpose Property Tax Rate
Request the Bucks County Court of Common Pleas to grant a petition permitting the Township to increase its general-purpose real estate tax rate up to 19 mills, consistent with the provisions of the Second Class Township Code. This approach would require court approval.
The Township pursued this approach for an extended period, from at least 1986 through 2004. The current discussion revisits this option as part of the Township’s efforts to address its longstanding structural deficit.
2. Local Earned Income Tax Coupled With a Property Tax Reduction
Consider implementing a Local Earned Income Tax (EIT) while reducing the general-purpose property tax rate by 5 mills. This approach would change the mix of local taxes used to support municipal operations, reducing the general-purpose property tax burden while introducing an earned income tax.
The financial impact would vary among taxpayers based on individual circumstances, including earned income and property ownership. The contemplated 5-mill reduction represents a component of the proposal under discussion; the overall impact would depend on the applicable tax provisions and each taxpayer’s circumstances.
3. Transition to First Class Township Classification
Consider transitioning from a Second Class Township to a First Class Township. This change in municipal classification would require voter approval and would involve changes to the Township’s governing structure and statutory framework.
Get Informed
To help residents better understand these options, the Township has posted fact sheets on its website outlining each approach. These materials are intended to provide residents with information about the alternatives under discussion and support an informed public conversation about the Township’s financial future.
Residents are encouraged to review the available materials, learn about the potential implications of each option, and stay informed as the discussion continues.
The Township recognizes that decisions concerning municipal taxation, governance, and the delivery of public services are important to residents, property owners, and the broader community. Providing accessible information is an important part of ensuring that residents can understand the challenges facing the Township and the options being considered.
For additional information, visit the Lower Makefield Township website here, scroll down to 2027 Budget Presentations, and review the General Fund structural deficit resources.
