Penn Township dodged a potential doubling of its workers compensation premium for volunteer firefighters this month when its new insurer dropped a recommendation that the township form an umbrella organization covering all five departments.
The decision by the State Workers' Insurance Fund (SWIF) will save the township more than $33,000 in 2013. The new rate will be $31,171, which is just a $661 increase from 2012, township manager Bruce Light said.
"I filed an application (and) I sent a check in for 25 percent down because I wanted to lock that in as soon as I could," Light said.
Township officials in August said they might have to pay $64,571 next year because of the fallout from a year-old state law that enables volunteer firefighters to receive benefits if they develop cancer from exposure to carcinogens at emergency sites. The township's old insurer, PennPRIME Insurance Trust, decided to discontinue coverage starting in 2013.
Officials from SWIF initially said the township would have to pay the higher premium unless it created a fire counsel to oversee the five companies.
The savings are another bit of positive news in a proposed 2013 budget that officials say is shaping up well because of good management by department heads. Commissioners have scheduled a special meeting for Oct. 29 at 7 p.m. to discuss the budget.
"I think it's the best-looking budget we've seen in the last several years," Commissioner Paul Wersing said.
An early draft shows that officials are reviewing a spending plan that would keep property tax rates at 13.7 mills, although commissioners might add a 1-mill fire tax to provide a dedicated funding stream for the fire departments.
If adopted, the fire tax would generate an estimated $242,000, which is $39,000 more than the township contributed to the companies in 2012.
Officials said they don't anticipate many sharp increases in their expenses next year. One of the few significant increases is for engineering services, which are projected to rise by $12,500 to $112,500.
Meanwhile, health insurance is decreasing for nonunion employees and police officers will begin contributing to their premiums for the first time in 2013. For the police department alone, insurance will cost $95,000 less.
The township also will receive $54,400 from state impact fees associated with drilling. According to state law, that money must be set aside for capital projects, solicitor Les Mlakar said.
Copyright 2012 - Tribune-Review, Greensburg, Pa.
McClatchy-Tribune News Service
