2026 Adopted Budget
2026 Budget Passes with No Tax Increase Despite $1M Shortfall
On December 8, 2025, the Upper Providence Township (UPT) Board of Supervisors (BOS) adopted a balanced $48.61 million budget for 2026 without raising taxes, despite facing a projected $1 million shortfall. The BOS approved the budget following a series of public workshops and departmental cost-cutting efforts.
The shortfall stemmed from a nearly 3% decline in the township’s $2 billion real estate base, driven by commercial vacancies and successful assessment appeals. This erosion impacted both real estate and earned income tax (EIT) revenues, which are key funding sources for the township.
To close the gap, all departments were required to reduce operating costs and scale back capital expenditures. The final budget includes $31.47 million in operating expenses and $17.15 million in capital investments.
“We are pleased to present a balanced budget that maintains essential services without burdening taxpayers,” said Township Manager Timothy J. Tieperman in the transmittal letter.
Revenue and Spending Highlights
The 2026 budget maintains the real estate tax rate at 2.75 mills. Despite this, the township expects to collect approximately $6.15 million in real estate taxes, assuming a 95% collection rate. The EIT remains the largest revenue source at $12 million, though growth has slowed due to hybrid work trends.
The township’s fund accounting approach, mandated by the Pennsylvania Department of Community and Economic Development, segments revenues and expenditures across several funds. These include the General Fund, Sewer Enterprise Fund, Capital Expenditure Fund, and others.
Key revenue sources include:
- $14.57 million from Act 511 taxes and fees
- $6.2 million from real estate taxes
- $3.1 million in parks and recreation revenues
- $7.3 million in sewer-related revenues
On the expenditure side, public safety remains a top priority:
- Police services account for $7.79 million (31.3% of General Fund spending)
- Fire and emergency services are budgeted at $3.9 million
- Public works and infrastructure maintenance total $3.5 million
Capital Projects and Infrastructure
The $17.15 million capital budget supports a wide range of projects, including:
- $3.7 million in road paving
- $3.1 million for sewer line replacements
- $2.38 million in park improvements, partially funded by state grants
Notable projects include the Anderson Farm Park trail loop and the Taylor Park Improvement Project, both supported by state funding.
Fiscal Prudence Amid Uncertainty
The township’s conservative budgeting reflects caution amid ongoing economic uncertainty. The Board cited the unpredictability of real estate transfer taxes and the cyclical nature of EIT revenues as reasons for maintaining a strong reserve position.
Commercial reassessments have significantly impacted the tax base. The top 15 commercial properties saw a combined $66 million reduction in assessed value, representing about 25% of the township’s real estate tax revenue.
Despite these challenges, the township avoided layoffs or service cuts. Instead, it relied on internal efficiencies, delayed capital purchases, and careful revenue forecasting.