Voters asked to approve open space tax

Referendum seeks earned income tax hike for parks, land

WHITPAIN » Voters in Whitpain Township will have an additional decision to make when casting their primary election ballots, and township officials are making their case.

Township officials have provided resources, including an online townhall and discussion on a referendum question on whether the township should raise taxes for preservation of open space.

“The open space ballot question is appearing on the 2022 primary election ballot. Here, Whitpain voters will see a question regarding an adjustment to earned income taxes, to be exclusively used for open space,” said supervisors chairwoman Kimberly Koch.

“We are asking residents to vote ‘yes.’ A yes vote will provide an additional dedicated stream of revenue for open space acquisition, debt repayment, and open space improvements, by adjusting the earned income tax or EIT by only six-one-hundredths of one percentage point,” she said.

Whitpain staff and the board have created a dedicated page on the township’s website explaining the reasons behind the open space ballot question, and with online resources for residents to do their research. According to the township, a yes vote would increase the township’s earned income tax by 0.06 percent, which would not take effect until 2023, and which “would add approximately $40 to the typical person’s annual EIT payment,” while having no impact on real estate taxes. The township has not raised taxes since 2010, and in that time has purchased one park, partnered to preserve another, and upgraded several more, all of which could be funded by the increased income.

Available on the township website are a video of a townhall meeting explaining the need for increase, a series of YouTube videos from each supervisor explaining their thoughts, and a list of frequently asked questions from residents. In the video townhall, board vice-chair Michele Minnick outlines a series of open space acquisitions the township has finalized since 1966 and how each has been converted into a public park or preserve, most recently with the purchase of the township’s Mermaid Park in 2020.

“Numerous improvements and acquisitions have improved to those parks in recent years,” Minnick said, before outlining a list of those upgrades, amenity additions, field conversions and more.

According to the township, the ballot question will appear on the reverse side of both Democrat and Republican ballots, and independent voters can also cast votes but will see the question on the front side of their ballots. Increasing the EIT will have less impact on seniors and those on fixed incomes than an increase to real estate taxes, the township officials state in the townhall, while surveys done during a recent township comprehensive plan update and parks and recreation master plan process “showed strong support for open space acquisition and maintenance as our most pressing concerns.”

“The increased revenue would be legally dedicated for the purposes of open space, to pay down acquisition debt, and for maintaining open space,” Koch said.

Based on the most recent census data, the average Whitpain resident’s per capita income is just over $67,500, and those residents pay a one percent earned income tax, which totals roughly $675 per year. The referendum increase by 0.06 percent would equal an additional $40 per year to that tax bill, “which equates out to not quite a dime a day, I think it’s 9.125, something around that,” said Minnick, and would generate roughly $640,000 in new revenue each year starting in 2023. Roughly threefourths of that income would be dedicated to paying off debt related to open space acquisitions, with the rest allocated to maintenance and development.

During the roughly 30-minute townhall, township officials fielded numerous questions from residents about the referendum, giving answers to questions as they were raised, and some of those questions are also addressed in an FAQ posted by the township.

“It’s always a delicate balance, when we look at our annual budget. We’re making sure that we have adequate resources to operate, to provide the safety that’s needed for our residents, but there’s also quite a demand for various recreational needs,” said Township Manager Roman Pronczak.

“There are some people who are very much interested in improving walkability; others feel it’s important to preserve open space, and then others talk about recreational needs for youth sports organizations. So we always have to manage and prioritize the projects, and the demands,” he said.

The video also includes an in-depth breakdown of the township’s budget, including projections over the next five years.

“We feel that the EIT adjustment is the fairest way to go about it. It yields a lot of revenue for the township, which is great, it’s a source of revenue, but most importantly it is the least damaging financially to independently working people. In other words, if you are not employed and you’re a senior, you’re not earning income, so therefor it doesn’t impact you,” Minnick said.

“We’re putting it in the hands of the voters. That’s really as transparent as we can make it,” she said.