Proposed EIT to Preserve & Improve Quality of Life

For Immediate Release
November 10, 2023

Mayor Keffer Proposes EIT to Preserve and Improve Quality of Life

Upper Darby, PA:  Mayor Barbarann Keffer announced today that she proposes a 1% Earned Income Tax (EIT) for 2024.  “The EIT is part of a multi-pronged financial strategy to secure the future of Upper Darby which includes the implementation of the realty transfer tax two years ago, the inclusion of third parties to manage delinquent taxes and fees and the business privilege tax as well as a stronger project and purchase bidding process which has resulted in higher revenues and lower costs over the last four years,” said Mayor Keffer.

Implementing an EIT is an important step for preserving and improving the quality of life in Upper Darby Township. Some of the immediate benefits include::

• Decreases our dependence on property taxes for revenue and would allow a property tax freeze for the 2024 budget;
• Helps keep our seniors in their homes by moving the tax revenue from being property based to income based;
• Spreads the costs of municipal services more evenly among residents and property owners;
• Increases public safety and community policing by adding 5 new police officers, including their salaries as well as immediate and long-term fringe benefits 
• Provides needed support to our Fire Department by ensuring that fire protection standards can be maintained;
• Maintains our commitments to retirees’ pension and health care costs;
• Brings revenue back to Upper Darby that has for decades gone to other municipalities.

Mayor Keffer goes on to say that “During my administration, I commissioned finance reports in conjunction with the state Department of Community and Economic Development to get my arms around the long-term fiscal projections for our township given our contractual obligations and inflation and the needs of our community for municipal services.  These reports indicate that we need a dedicated new revenue stream and an Earned Income Tax is the best option, one that most municipalities in our commonwealth already have instituted.  I hosted two Town Halls specifically on the topic of our financial future based on these reports: one on April 20, 2022 and one September 20 of this year.” 

The Earned Income Tax (EIT) is projected to generate $9 million in revenue during its first full year of implementation. The financial studies related to the need for this revenue stream are posted on the township website under “Departments-Finance-Special Reports”.  The EIT does not apply to interest earnings, dividends, social security, capital gains, lottery winnings, unemployment, 3rd party sick pay, insurance proceeds, gifts, bequests, inheritances, and active military duty pay.

Mayor Keffer will be submitting to Council a revised proposed budget which will include the revenue from the proposed Earned Income Tax and allow for the increase in the Public Safety budget, increases to the Recreation budget, and removes the proposed property tax increase.  

Chair of Public Safety Lisa Faraglia stated, “The need for increased funding to hire additional police officers in our community is vital. We all value public safety and the well-being of all our residents, it has become evident that an increased police force is essential for maintaining law and order. By implementing an EIT, we can secure the resources to recruit and retain qualified officers, provide ongoing training, and invest in the latest technology and equipment.

The resolution passed unanimously by council was for five additional police officers each year for the next five years. Ensuring the safety of our community is a collective responsibility, a well- supported police force plays a vital role in achieving this goal. I encourage your support for this initiative, as it will contribute to a safer and more secure community for everyone.

In addition to the EIT, the revised proposed budget will offer a new $100 rebate for qualified homeowners on the sewer fee and expand the $100 rebate on sewer and trash fees for disabled veterans who already qualify for a tax exemption.  It also does not raise property taxes.

Council Vice President Hafiz Tunis emphasized, “The 1% Earned Income Tax will put our township in a stronger financial position. With the EIT we can take the burden off our seniors, invest more funds in our police department, and bring back revenue to our community that has been invested in other communities for decades. I would like to applaud the Keffer Administration for this proposal.” 

The revised proposed budget will be available on the Township website in time for the next public hearing on the 2024 Budget which will take place at 6pm on Wednesday, November 15th. There will be a Town Hall on the Earned Income Tax on Thursday, November 16th at 6:30pm.  These public meetings will be livestreamed and archived on the Township YouTube channel.

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Note: Please view some Frequently Asked Questions regarding the Earned Income Tax at: https://www.upperdarby.org/eit