Home Rule Charter – Vote No… for more taxes, new taxes, more local government

The Franklin Park Republican Committee recommends voting “NO” to the ballot question on whether or not to move forward with the Home Rule Charter evaluation.

Here are the reasons:

• A tax increase is on the horizon, whether or not Franklin Park adopts Home Rule Charter. Currently, the Borough Council may adjust only the Real Estate Tax. Under a Home Rule Charter, the Borough Council may also adjust the Earned Income Tax and/or Real Estate Transfer Tax.
• KEEP EXISTING SYSTEM UNTOUCHED If the Real Estate Tax is raised by 0.55 Mills (from 1.59 to 2.14), the Borough financial deficit would be resolved – without the time and expense (approx. $50,000 – $100,000) of implementing a Home Rule Charter. Such an increase would result in Franklin Park having the 7th lowest property tax millage rate in Allegheny County municipalities, instead of the current position as 5th lowest. 
• This would mean an annual increase of $143 on a home assessed at $260,000. This would place Franklin Park in the top 7 municipalities with the lowest taxes, instead of the top 5. A straightforward, necessary and careful tax increase would resolve the deficit issue without the time, expense and uncertainty of implementing an entirely new form of community government.
• HOME RULE CHARTER Home Rule Charter reaches beyond today’s municipality tax structure. It allows for the redefinition of the basic composition, powers and other functions of the municipality. To the extent the purpose to adjust a budget deficit, such an uncharted herculean endeavor is unnecessary.

Furthermore, the additional tax opportunities will not be adequate without supplementing these with a Real Estate Tax increase.

Through the Home Rule Charter, in addition to the Real Estate Tax, there would be two other opportunities for taxes:

TAX………………………………….Current Rate……..Home Rule Charter Max Rate
Earned Income Tax…………….0.50%………………unlimited
Real Estate Transfer Tax …….0.50%………………unlimited
Real Estate Property Tax……..1.59 Mills………….unlimited

Other considerations:

• Since 1972, only 79 of the 2,560 municipalities (3%) in PA have adopted a Home Rule Charter.
• Some local municipalities that have adopted Home Rule Charters:
  Pine, McCandless, Bradford Woods, Richland, Upper St. Clair
• Most local municipalities have NOT adopted Home Rule Charters:
  Cranberry Township, Butler Township, Bethel Park, Ross Township, Hampton Township, Peters Township, Washinton, Robinson Township, Shaler Township, Scott Township, O’Hara Township, Fox Chapel, Bellevue Borough, West View, Oakmont, Ohio Township, Avalon Borough, Sewickley Borough, Aspinwall, Emsworth Borough, Ben Avon Borough, Edgeworth, Bell Acres, Sewickley Heights, Kilbuck Township, Sewickley Hills, Ben Avon Heights Borough, Seven Fields Borough.
• Incorporation of a Home Rule Charter requires only a majority of voters. To the extent this may become a partisan issue and one party produces more voters, major changes to the way the Borough does business may favor the wishes of one party over the other.

Home Rule Charter was passed in 1972. If there was a way to get outside money coming into Franklin Park through Home Rule Charter, another municipality would have already figured it out. Therefore, any new taxes created through Home Rule Charter will be paid by us anyway. Having the State of Pennsylvania restrict new tax creation remains the best approach.