Gilpin supervisors are proposing a budget for next year that would increase property taxes by 71%.

The proposed increase would raise the tax rate by 5 mills, to 12 mills. At that rate, someone who owns a property assessed at $20,000 would owe $240 in real estate taxes, or $100 more than this year.

Proposed spending in 2021, about $805,000, would be 71.6% higher than this year. The proposed 5-mill tax increase would help “balance the 2021 budget and give us a surplus to carry into future budgets” of almost $65,000 , according to Supervisors Chairman Charles Stull.

Among financial challenges facing the township, wage tax collections were about $42,000 less than expected this year and the township saw its assessed property value drop by nearly $1.4 million.

“We are taking a huge hit on our revenue that’s for sure,” Stull said.

In a news release, Stull said the ongoing covid-19 pandemic has reduced many people’s earnings, which affected wage tax collection.

In addition, Allegheny Technologies Inc. (ATI) won a real estate assessment appeal that dropped the assessed value of its former ATI Bagdad property by more than $1.5 million. The township has been hit “very hard” by the appeal, Stull said.

“I sincerely hope ATI will consider the sale of their Bagdad plant buildings to a business which can be productive and contribute to our community,” Stull said. “It’s sad to see a large industrial area sitting empty.”

ATI spokeswoman Natalie Gillespie said the Bagdad plant is not on the market.

“We continue to assess future potential for that location,” Gillespie said. “Equipment (on the site) that can serve our other operations — such as electrical and machining equipment — will be moved to where it is needed, and other remaining equipment could be sold.”

The Bagdad plant was idled in 2015 and permanently closed in 2016.

Stull said township supervisors trimmed the budget in many areas, including cutting about $30,000 from the road maintenance fund and eliminating a proposed $30,000 project to build a garage to house township police vehicles.

“We will still pave township roads, just fewer miles of them,” Stull said.

“While the Board of Supervisors does not want to see a tax raise, as we all pay taxes as well, it is time to get ahead of the game and plan for future boards to avoid another large raise in taxes for as long as possible while still providing all services,” Stull wrote.

Stull said this will be the first significant increase in taxes since 2005 when taxes were increased 1 mill. The township also raised taxes by a half-mill in 2o11 and three-quarters of a mill in 2019.

The proposed 2021 budget may be viewed at the township building at 589 Route 66 in Gilpin.

A final vote is scheduled at 6 p.m. Dec. 30.

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