By Richard L. Gaw
Staff Writer

Kennett Township moved closer to the approval of its overall 2025 budget on Oct. 2, highlighted by an introduction to its proposed operating budget which is projected to begin the new year with $12.4 million across all funds, including $5.5 million in its general fund.

In a slide show presented by Director Finance and Human Resources Amy Heidrich, the township has eight to ten months of general fund revenues and expenses, far greater than the Government of Finance Officers Association’s recommendation for a municipality, which is to have a minimum of two months general fund balance. 

On the operating expense side, the township’ budget is proposed to be $8,356,569, an eight percent increase ($633,649) from 2024. Of those top cost centers, 32 percent will be directed to the township’s Police Department stands at the top with an expense budget projected at $2,703,706 for next year, a 14 percent increase ($338,667) over 2024. The primary drivers for its increase will reflect a 7.3 percent increase in its pension municipal obligation and a 7 percent overall increase in salary and benefits that include overtime, medical and dental insurance and tuition reimbursement.

The township’s contribution to the Kennett Area Fire & EMS Commission is anticipated to reflect 22 percent of the township’s anticipated costs for 2025 and see a 17 percent increase in operating expenses next year ($260,216) to cover its capital contribution to the Commission. Currently, the township is responsible for 30.5 percent of the Commission’s entire budget. In 2025, the Commission is projecting a $500,000 increase to pay for new vehicles and equipment and another $407,000 that is projected to be designated for salary increases, the hiring of an additional truck driver and repairs at the Kennett Fire Department’s facility.

On the revenue growth side, Heidrich said the township forecasts a general fund revenue of $8.6 million, a nine percent decrease from the 2024 budget, with earned income tax and real estate taxes expected to make up 83 percent of the township’s recurring revenue in 2025. Broken down, the current 3.5 mill tax provides $2.8 million in real estate tax income to the township, at an assessed average of $761 per township household per year.

In looking at the what the township proposes to spend in its 2025 operating budget, “it does not include any tax increases,” Heidrich said. Yet, if in fact the township were to consider a tax increase, it would likely be one-tenth of one mill – a 2.86 percent increase -- which is below inflation. 

The 2025 budget, Heinrich said, does not include the $872,000 the township received from the American Rescue Plan Act (ARPA). The account, which now holds $961,719 that reflects growth from interest, was intended to utilize the grant funds for improvements to the township’s wastewater sewer collection system; specifically, the expansion of the Rosedale Road Pump Station and the force main that extends from that pump station into the Borough of Kennett Square. The project is estimated at $552,000, leaving several hundred thousand dollars that can be used to pay for other projects. The board authorized that the remaining funds will be designated toward the purchase of a new woodchipper, estimated at $126,000; three new panels at the Ashford sewer station ($40,000); a new sewer utility truck ($144,000); a new loader, priced at $224,000; and various other projects, priced at a total between $128,000 and $140,000.

“We are in a strong financial position,” Heidrich said. “We have worked really hard over the last five years to get us to this place and preserve it. We have had to make tough decisions all along to balance the right amount of what to depart with and what to save. All of that looks at the long run and making sure we’re in a solid financial position.

“I really feel good about where we are, and if you’ve been listening to me for the past few years, you now that it’s been a busy and challenging few years, and we’ve gotten to the point where we can say were moving in a good direction with our Fire and Ambulance services. Our police force is well equipped and fully staffed now and our Public Works team has been enhanced with equipment and employees and is taking on some great projects, as we have a strong administration to support these teams.”

Next year’s Kennett Township budget will continue to be discussed at the Board of Supervisors’ Oct. 16 and Nov. 6 public meetings and is expected to be approved by the supervisors at the board’s Dec. 4 public meeting or on Dec. 18, if needed.

To contact Staff Writer Richard L. Gaw, email [email protected].