New Freedom budget workshop: DCNR grant paused, Franklin Square appeals cut taxable value and complicate revenue outlook

New Freedom Borough council members and staff met in a budget workshop to review the draft budget, tax-rate history and related items, where staff said the borough will not owe reimbursement to a paused DCNR grant and outlined how a recent assessment appeal on the Franklin Square development reduced taxable value and municipal revenue projections.

Borough staff (identified in the transcript as "Borough staff") told council members that "we basically have additional monies because we don't have to pay back the DCNR grant," and later clarified, "No. There's no there's no reimbursement due to DCNR for any grant funds because we asked for reimbursement, not not even upfront." Staff also said the grant and associated pay for the recreation director are effectively paused: "So basically, both things stop at this point. Obviously, we the commission stopped paying recreation director and DCNR stopped our called our grant opportunity."

Why it matters: the pause changes how much grant-funded salary will appear in borough spending and leaves staff and council to decide whether paused funds create capacity elsewhere in the budget. Borough staff emphasized the pause does not create immediate discretionary funding because reimbursement is tied to actual expenditures: "We we can't get reimbursed for something. We're not spending it putting out money."

The workshop also reviewed recent event costs from the "Smoke on the Rail" weekend and payroll choices for public works staff who supported the event. Staff said those public-works hours were included under the labor column as paid hours (not solely PTO) and that employees have the option to take paid time or comp time: "There's always a choice. You can't force anybody to To take comp compared to taking that." Council members pressed for a breakdown of hours and asked staff to compile hours worked and public-works charges tied to the event for follow-up.

A large portion of the discussion focused on tax values tied to the Franklin Square development and how assessment appeals affect municipal revenue. Staff presented taxable-property totals and said the borough has 1,865 taxable properties with roughly $78,000,000 in land value and $307,000,000 in improvements on the tax duplicate. Staff walked through three major Franklin Square parcels, describing one parcel assessed near $4,800,000 that produced municipal tax of about $10,800 on that parcel and other parcels assessed at roughly $2,000,000 and $3,800,000. Staff explained those parcels had a subsequent appeal: "They appealed in 01/23, and it was effective for '24... I know that they won their appeal and had a a reduction. I will find out what that was."

Staff and council discussed how appeals and subsequent tenant fit-outs (for example, a bakery, a jujitsu studio and a salon) can trigger reassessments by York County when building permits are submitted. "York County comes out and does a reassessment of that property," staff said, adding that increases from tenant improvements can generate interim tax bills.

Council members raised concerns that the appeal undercut the borough's expectation that the development would broaden the tax base and produce more revenue. One council member observed, "But it sounds like that's been circumvented because they appealed their assessed value. It wasn't challenged. They won. So we are seeing less revenue," and asked staff to pull a detailed breakdown of what the borough is currently receiving in taxes from the Franklin Square parcels.

The workshop also revisited the amusement-tax refund practice and discussed other local tax options to capture contributions from people who work in the borough but live elsewhere. Borough staff noted that collections and administration of payroll-type taxes are handled by the York Adams Tax Bureau, and described a conceptual rationale for considering a payroll/employee tax: "An employee that's not a resident is not contributing back to New Freedom for the use of roads, infrastructure."

On debt and long-term obligations, staff walked the council through the borough's debt-service schedule and related general-fund obligations, noting refinancing portions will phase off by about 2030. Council members also asked about solid-waste and landfill capacity countywide; staff said county compaction-rate improvements have pushed the anticipated shortage further out and that counties are actively exploring additional sites.

Council members directed staff to provide additional materials and follow-up figures for the November meeting, including: (1) a detailed breakdown of Franklin Square parcels and post-appeal tax receipts; (2) a reconciliation of Smoke on the Rail labor and public-works hours; and (3) options and sample ordinances related to local tax mechanisms and the amusement-tax refund practice. The workshop was adjourned and council confirmed a next budget meeting on November 3.

Votes at a glance: the only formal recorded motion in the transcript was a motion to adjourn the workshop. The motion was seconded and the council voted in favor.

Ending note: staff committed to pull assessment-appeal records and to provide a more detailed packet for council review at the next scheduled budget session so members can consider policy and revenue options before finalizing the tax rate.