Keystone Central School District trustees voted Thursday to keep the district’s real-estate tax collection in-house, retain the current tax-office employee and contract Berkheimer Tax Services to collect the district’s Local Services Tax (LST) and Business Privilege Tax (BPT). The motion, made on the administration’s recommendation, passed by roll call.

The decision follows extended discussion about costs, ongoing litigation over business privilege settlements, how municipalities in the region are choosing collectors and whether additional outside audits are necessary. A Berkheimer representative told the board, "Our position, Berkheimer, is you are the client," and emphasized the company would follow the district’s decisions about which taxes to collect.

Board members and staff debated detailed cost items and program mechanics. District staff described the SMILES volunteer tax credit program, under which qualifying volunteers receive a $500 reduction on their real-estate bill; administration estimated the district’s postage cost at roughly $11 per SMILES adjustment and Berkheimer’s reprint/postage cost at about $40 per bill. Tax office staff said Berkheimer’s quotes were prepared to allow the district to compare in-house and outsourced options.

Board members also raised operational questions: several boroughs and townships have already signed with Berkheimer for some taxes, the county did not respond to the district’s outreach about real-estate collection, and the district’s tax office staff would remain as a point person to manage ongoing matters and lawsuits. Administration said Berkheimer would not assume active, in-progress collection lawsuits without district direction, and the district’s auditor (Baker Tilly) would include any contracted activity in the annual general-fund audit; the board was told a separate SOC report was not required for the district’s decision.

During the meeting, trustees pressed for clarity on headline costs and contract terms, asking whether Berkheimer’s pricing includes an annual escalation clause; the company representative said pricing caps were included mainly to address "catastrophic circumstances" and that in practice Berkheimer has not adjusted fees historically. The board also asked whether Berkheimer would maintain a staffed local presence and was told Berkheimer planned to sustain a local office if needed under the proposed contract terms.

District administrators confirmed municipal choices will affect the district’s workload and revenue flows. Several municipalities — Mill Hall, Flemington, Dunsville (Dunstable), Renova, Chapman Township, Woodward and Porter Township — were described as moving forward with Berkheimer for some taxes. Trustees asked administration to confirm contract specifics for each service line and to provide follow-up detail on the SMILES program administration and the total district cost of maintaining in-house real-estate collection.

The board approved the motion by roll call (eight yes votes), and administration said it will proceed to finalize contracts and coordinate transition details where required. Trustees requested additional documentation and follow-up reports about the contract terms, anticipated district costs and the status of municipal agreements.

Why it matters: the vote determines who bills and collects several local taxes affecting property owners and businesses across the district, shapes the district’s staffing and administrative workload, and affects how disputed collections or settlements will be handled going forward.