For the last few years, it’s been the philosophy of the current Board of Commissioners to not accept dedication of new public roads in neighborhoods built on farmland. The latest examples are the Stone Hill Meadows project and the proposed 17 lot estate plan over on the Farr Tract. The township is done taking on long term financial responsibilities for new infrastructure liabilities. The same goes for stormwater facilities.

Note: This doesn’t impact projects approved before last two years. Only new ones. If you live in a neighborhood built before this year and you have roads still maintained by the developer and the township is meant to take them over that’s still happening. This is only on new projects moving forward. 

New neighborhoods built on farmland must now have internal private roads maintained in perpetuity by newly formed resident HOA’s consisting of folks who buy homes in that neighborhood. This reflects the townships evolving smart growth philosophy. The township desires to guide new growth away from our remaining farmland and towards existing infrastructure and appropriate corridors where investments have already been made.

New subdivisions built on large parcels of farmland are no longer a desirable outcome in our township. Preservation is now the highest priority. Where we cannot preserve for whatever reason, developers must now take into consideration the full cost of maintaining roads themselves in perpetuity when figuring out financial considerations. Note: While we are no longer taking ownership of new roads, we are still requiring all new private roads be built to township engineering standards. We’re just finished with assuming new long term obligations.

Therefore in an effort to be entirely up front it’s important developers and landowners understand and account for this when considering due diligence for projects in Lower Mac.

The underlying rationale and basis for this viewpoint is the fact that new residential development costs us more in new liabilities than it produces in new tax revenue. When a subdivision is built the township gets new revenue. But the problem is with certain types of greenfield (built on farmland) projects – new costs always exceed new revenue. This includes items like road repair, sewer maintenance, and increased demand on public schools. Studies show a residential subdivision typically costs a community 1.30-1.40 in new liabilities for every 1.00 in new revenue. This is of course a losing transaction. The easiest way to address this at least in part is to refuse any new infrastructure we’re not under obligation to take.  And for the past year and moving forward we aren’t.

Further to this end I also want to explore ways we can ensure homebuyers considering units in new projects are informed of the responsibility they are entering into when they buy into a neighborhood with private infrastructure maintained by an HOA. That prime responsibility being the perpetual maintenance obligations of all new internal infrastructure. There are ways the township can accomplish this by requiring by ordinance notification during a purchase process. Realtors for whatever reason often don’t do a good job elaborating the long term maintenance obligations and new homeowners are caught flat footed.

To be clear, Lower Mac has a number of wonderful thriving and financially resilient HOA communities. Over the years many developers have proactively chosen HOA arrangements and sought private road networks for a host of reasons. This is especially prevalent in our fantastic over 55 communities. The overwhelming majority of which have rock solid long term finances and plan accordingly for the future to maintain their communities. One however in the past few years has made overtures to the township to “take over” their internal private road network. The answer from the township was of course no. Again, at this point in our growth evolution Lower Mac is finished taking new roads.

A currently proposed state constitutional amendment – in the form of HB1285 – would enable Lower Mac to completely eliminate residential property taxes for qualifying homestead properties.

Note: This is not the same issue as SB76 – School property tax elimination. That’s the Bill to completely eliminate school property taxes by shifting funding to increased sales and income taxes. That’s a separate conversation with unique and different pro’s and con’s. 

While SB76 addresses school taxes, it does not address any reform of local township taxes. To that end HB1285 would allow Lower Mac to expand our current reduction program and entirely eliminate municipal property taxes for residential homes in in the township. Therefore, in addition to SB76 I also support the constitutional amendment to expand the Homestead Exclusion.

If you recall, when I came into office one of the first major proposals I made was to institute the homestead exclusion. We did it to the max allowed over a two year phase in. The result was reducing and in some cases completely eliminating the township property tax for homeowners. 90% of residents over a two year timeframe got a reduction. HB1285 would allow the complete elimination. Something I would then immediately argue for should the amendment pass.

It is a long and tough process to amend the Pennsylvania Constitution. It takes a majority approval of two consecutive sessions of the General Assembly followed by an approval of the majority of voters. HB1285 has now been passed in two consecutive sessions, so I believe the next step is the voters. (I am confirming my understanding)

How would this work:
Currently, for some unknown reason the state Constitution only allows exclusion of 50% of the median assessed value of residential properties within the taxing district. Lower Mac has instituted that to the maximum currently allowed. While that has provided relief, it remains un-necessarily capped by the state. HB147 fixes that and amends the state Constitution to allow municipalities to entirely eliminate qualifying residential property taxes. Commercial and Industrial users including ultra impactful warehouses and also investment properties would still be subject to the townships very low property tax millage. (one of the lowest in the County)

This has been used successfully on the municipal end. With Lower Mac being a prime example. If this were to pass at the earliest possible point I would begin the budget conversations to eliminate residential property taxes entirely in Lower Macungie.

Here is a link to my original argument for initiating the homestead program originally. The program has been a success giving residents a needed break. While our taxes are already some of the lowest in the Lehigh Valley, we have to be aware of the cumulative impact including taxes from other governing bodies we can’t control. We must remember we don’t levy taxes in a vacuum.

So much of what we can and can’t do at the township level is determined by rules set in place by Harrisburg. For that reason over the last 4 years we have taken an active role in advocating for helpful legislation in Harrisburg. We’ve done this on a number of occasions but I wanted to highlight one success story.

Last December Harrisburg enacted Act 172 which allows the township flexibility to give credits to volunteer firefighters. Lower Mac will be taking advantage of this starting next year by waiving 100% of municipal earned income taxes for volunteers. This also includes the ambulance core for those who qualify. Prior to last year this wasn’t an option.

Our advocacy for the enabling legislation began over a year ago when I asked our board to consider a resolution encouraging local state leaders to support the idea. So, we drafted approved and sent it away to our State Representative and Senator. Similar legislation was considered for years but never could get out the starting gate. So we felt it was important to let elected officials know just how important this was. After Lower Mac’s advocacy Ryan Mackenzie our State Rep. became a co-sponsor of a bill allowing the credit. And since then it has been signed by the Gov. and passed into law.

Starting next year LMFD firefighters who live in the township will benefit from this team effort.  It’s important we pursue these benefits as unfortunately volunteerism wains. in 1976, PA had a total of 300,000 volunteer firefighters.  Today, that number has dwindled to about 50,000. So, we must do everything we can to encourage the recruitment and retention of volunteers. For a volunteer making the median income the credit will put 300 dollars back into their pocket.

Bottom line:
Now this and other benefits alone of course aren’t the core reasons our volunteers do what they do. In the grand scheme I wish we could do even more. But little every bit helps. I’m convinced of that. And we’ll continue to do our part as much as we can. And in all areas where we see opportunities to advocate with the state for more flexible laws our Board will continue to do so. 

I got a few concerned messages last week about a number of new very large “for sale” signs on major pieces of property in the township. Specifically a number of large cornfields.

There are couple things important to remember: 

1.) Official Map adopted.
First and most important, many of these properties including those on Lower Macungie Rd. and also at Brookside and Sauerkraut are designated on the now adopted township official map for preservation. Lower Macungie Official Map FAQ. Can’t stress enough how important this is. 

2.) We are communicating with landowners.
With every major property designated on the map, township staff has reached out to landowners in an effort to proactively begin conversations. In at least one case (Brookside and Sauerkraut) these conversations are productive and ongoing. A basic framework for preservation has been agreed upon. Below is a Morning Call article outlining the transferable development rights concept that could result in substantial preservation. Family of late developer Weiner helping Lower Macungie pursue farmland preservation, mixed-use village.

3.) Landowners have their property rights.
In all cases even with protections of the official map in place (the 1 year “pause button” on any development plans) landowners still have every right to market properties. In some cases this can actually “move the ball forward” since it helps determine market price. It’s not reason to think development is imminent.

4.) Township remains completely committed to preservation deals. 
What I have told everyone who reached out is that the township remains completely committed to preserving properties identified on the official map. I will say with confidence no stone will be left unturned as far as strategies to accomplish that. We’re taking the biggest swings we can take to get land preserved. All tools are in the toolbox. While some of these conversations are complicated and ongoing, in one case I am cautiously optimistic at this point.

5.) No more flexibility for greenfield developers. No waivers. No variances. 
When determining market value one thing landowners/developers must understand is that the township is no longer willing to grant regulatory flexibility to induce anymore growth. We’re well past the point where we see large tract subdivisions as desirable. A recent example would be the Farr Tract. In that case, we were asked to grant a development inducing text amendment that would have allowed 90+ units. The township denied that request. So now instead that property is moving forward with a plan for 17 estate lots. This was a huge win drastically reducing the impact of development.

In conclusion landowners have every right to develop properties, however large greenfield tracts must now be in strict compliance with the zoning ordinance. We will exercise our rights to deny plans that are not. This is a fundamental shift in philosophy over the last 4 years. With that being said, we are engaging landowners in preservation conversations. All tools to get the job done are in play. One thing is certain these things take time. I’m learned a lot of patience over the last 3 years.

I wanted to share this since it demonstrates clearly the hole we were put in by prior boards. The chart below shows all the current truck restriction ordinances in Lower Macungie. As you can see all except one have been approved and instituted last 3 years since I came into office. Meaning, the prior board who was responsible for rezoning the Spring Creek Rd. area allowing for major proliferation of warehouses – did so virtually without laying any groundwork to prepare our road network. They literally left us high and totally dry forcing us to play a game of endless catch up once the new board was in place.

The current BOC adopted 18 truck ordinances over the last 3 years. The board who created the problems adopted one. Of course, as we know no matter how much signage we put up we’re learning that the enforcement burden is the next problem we were left with. 18 ordinances adopted and we are still treading water. The hole they dug us is very deep. I promise we will keep working at the problem.

Roadway restrictions.

Turning restrictions

Brake Retarder prohibitions
Parking restrictions

Over the last 7 years this event has grown! Each year more is added to do. My hope is this event eventually grows into a proper yearly township fair. It’s getting closer. For 2017 we introduce “Music on the lawn”. Entertainment under a tent with seats. I’ll be there. And I hop to see you!