Hempfield officials make plans to spend $7.5M surplus

Hempfield officials are reallocating $7.5 million in surplus funds after higher than expected revenues in recent years.

Township supervisors this week approved a plan to use the money to buy public works equipment, pay off fire trucks and foot the bill for a second road paving project, among other priorities.

Township manager Aaron Siko said he worked with department heads to identify projects that could benefit from the extra cash.

“We have more money than we need in reserves, so we’re using that to fill the gaps,” Supervisor Doug Weimer said.

Siko attributed the additional revenue to conservative budgeting and responsible grant management. A township policy requires that there’s a $2 million balance in the general fund at the start of every year.

Hempfield started 2025 with more than $9 million in that account.

About half of unexpected revenue in 2024 came from investments, Siko said. Another big chunk came in the form of earned-income taxes paid by residents. Total expenses in 2024 were $15.5 million and revenues were about $18 million.

Hempfield has maintained a 3-mill property tax rate for 35 years.

Since 2021, the township has been awarded $12.9 million in grants. They required $14 million in matching funds and what Siko referred to as “bridge financing” — which allowed the township to have money on hand to cover project-related expenses while awaiting grant reimbursements.

But now that many of those projects are underway, money has been freed up to reallocate.

“That is a staggering amount,” he said of the grant funding. “How we were able to do that is by having matching funds available.”

The surplus allocation plan includes:

• Setting aside $1.25 million and $975,000 for purchases in 2026 of a rescue truck and pumper truck, respectively, for the fire department.

• Paying off four outstanding fire apparatus loans, two each with Carbon and Fort Allen fire departments, with $634,700.

• Buying a boom mowing machine for $276,000.

• Replacing a network server for $25,000.

• Paving roads in the Heather Ridge and Hempfield Manor areas. Supervisors approved seeking bids for the project, which was originally scheduled for 2026.

“The plan is not just about spending surplus funds, it’s about making responsible forward-thinking investments that align with community needs while maintaining financial stability,” Siko said.

Some of the spending, such as the paving project, address concerns from residents, Weimer said.

“We’re investing the surplus back in the community,” he said.