O'Hara property taxes could spike by 14% as part of township 2025 budget

O’Hara property owners could see their real estate tax bills go up by about 14% as part of the township’s 2025 budget.

Township officials mulled over next year’s budget at a special workshop meeting Nov. 19.

Financial documents indicate the millage rate would increase from 2.1 mills to 2.4 mills.

O’Hara’s median property value is $350,700.

That property owner would see the township’s real estate tax bill go from $736 this year to $841 next year should the budget be adopted as is next month.

One mill generates about $1.277 million in revenue for the township.

The last time taxes were raised was in 2020 — from 1.9 mills to 2.1 mills.

The proposed budget also utilizes about $1.443 million of the township’s unassigned fund balance, or reserves, to help balance the budget.

Projected revenues and expenditures were listed at about $17.38 million.

Expected income includes about $3 million in real estate taxes, $5.405 million in earned income and local tax enabling act funds, $1.653 in shared revenue and grants, $590,000 in charges for services, $198,500 in business license and permits, $160,050 in building/structure funds, $124,850 in interest earnings and $28,500 in fines.

Expected spending includes $7.94 million for public service, $3.435 million for capital improvements, $3.034 million for police, $587,000 for debt service, $400,000 for community development and $226,000 for pensions.

Some of next year’s highlights include $1.2 million for paving, $450,000 to replace the retaining wall along Mary Street behind the Pleasant Valley fire station, $275,000 for a new ambulance, $75,000 for a new fully-equipped police car and fittings for another vehicle acquired through a grant, and a $22,000 contribution to Cooper-Siegel Community Library to have its Sharpsburg branch open on Fridays.

The retaining wall project is being funded through a state grant obtained with the help of state Sen. Lindsey Williams and state Rep. Mandy Steele.

Garbage collection is paid for through township taxes. Residents do not receive an additional bill for that service.

A public hearing is scheduled for 7 p.m. Dec. 3 at the township building to discuss the budget.

Township Manager Julie Jakubec said next year’s spending plan was the hardest she has ever had to prepare due to not knowing the full assessed value of township properties. It also is a driving factor for the proposed tax increase.

“I don’t know the floor of the assessed value,” she said. “That is my concern.”

A recent ruling by an Allegheny County judge has made it easier for Allegheny County property owners to challenge property assessments.

For example, a house valued at $200,000 used to be able to be lowered to $162,000. Now it can be lowered to $127,000.

Jakubec said is expecting about $100,000 in real estate tax refunds this year and projects at least $55,000 in refunds next year.

The manager emphasized the budget is still in draft form and council could make adjustments before its scheduled adoption Dec. 10.

“It is their budget to adjust as they wish,” Jakubec said.

Any tax hike greater than the proposed 0.3-mill bump would necessitate a budget readvertisement.

“It makes sense to be as conservative as we can this year,” council President Cassandra Eccles said at the special workshop meeting.

Council Vice President Mike Hammill echoed those concerns and indicated the township needs to continue with the programs and services already provided.

“I don’t think we need to add anything to our budget when there’s uncertainty,” he said. “I think we should be cautious.”

The proposed budget is available for review at the township office, 325 Fox Chapel Road.