Eldred Township supervisors discussed the possibility of small increase in the millage rate during a budget meeting on Saturday.

The current millage rate is 0.00138 on $212,706,353 worth of taxable assessed value in the municipality. Township secretary Ann Velopolcek said that means the millage is 1.38 on every $1,000 of taxable property.

Because the township had to replace two dump trucks - built in the 1990s - last year and this year, the supervisors would like to start saving money now for future vehicle and equipment costs. Jim Phillips, the township treasurer, suggested a quarter-mill increase.

He said 1 mill will generate $200,000, so a quarter increase would generate $50,000. A possible increase of 0.25 mills would bring the millage rate up to 1.63 mills.

The funds could be used to pay the current annual leases on the two dump trucks that were purchased in lease-to-own contracts or to create a special capital reserve fund for future vehicles and related equipment purchases. This would give the township $50,000 that could be set aside in a capital reserve fund.

“I think we need to put away something,” said Supervisor Donna Mikol.

After the township received the 2019 dump truck, the older truck it replaced was sold on Municibids. The second truck is a 2021 International dump truck, and hasn’t arrived yet. It will replace a 1996 dump truck that will probably be put up for sale once it arrives. The newest truck will cost a total of $163,348. The total for both vehicles is $119,420 per year. The two lease-to-own agreements are both for five years.

The township also has a 4-year-old truck and a 17-year-old truck that are being used.

“Those trucks get used every day,” Velopolcek said.

The public works department handles much of the township’s work in house, so the trucks get used more than they did in years past. There are three full-time employees and two part-timers in the department.

Velopolcek said past supervisors had considered creating a special fund for a specific purpose, such as the one for vehicles and related equipment, but decided against it. A capital reserve fund locks the money into that need. If money is in the general fund, then the township can use it for other purposes that may come up.

In addition to replacing trucks, the township is also looking at paying for a roof replacement on the municipal building. Velopolcek said it hasn’t been replaced since the building was built in 1994.

The proposed budget Phillips presented listed the township’s total for revenues at $850,400. Its total for expenditures was $1,076,720, resulting in a difference of $226,320.

By going over each line of the budget, the supervisors and Phillips, with weigh-in from Velopolcek and the Public Works manager Frank Fehlinger, were able to reduce the difference to $193,000 after meeting for several hours.

Supervisors’ Chairman Gary Hoffman said township doesn’t have any industry and very little commercial property. It’s a balance to maintain the township and provide for the safety of the people.

“We’re sort of like a senior citizen on a fixed income,” he said. “We have to be fair and we have a fiduciary responsibility to the community.”

The township does have $345,000 left over in funds from last year. The revenue plus the funds left over add up to a possible $1,195,400 available to the township in the proposed 2021 budget.

The supervisors will meet with Phillips again on Monday for a special meeting to cover changes to the proposed budget. That meeting will be open to the public and will be held at 2 p.m. in the municipal building.