Hampden Township, Pa. - Many cities and towns are struggling financially, so it's not too often you hear community leaders talking about a budget surplus. But Hampden Township had a $1.4 million surplus last year.

Compare that to a city like Harrisburg, which is operating hundreds of millions of dollars in the red.

One doesn't have to look far to find new construction in the Cumberland County community. Near Wertzville Road alone, dozens of town homes and two hotels are going up. There are also plans for a new grocery store, a bank and gas station.

"We recognize the benefit of development to lower tax rates into an increased tax base as well," said township manager Mike Gossert.

The average homeowner pays about $36 per year in local property tax.

"I'm told we have the lowest property tax of first-class municipalities in the state of Pennsylvania," Gossert said.

The township also receives revenue from real estate transfer taxes when land changes hands.

The resulting construction comes with a cost, however, one that Annette Putt can't put a price tag on.

"This was all farm land all through here," Putt said. "It's just so overly developed, I feel."

Putt moved in back in 1995, and says her neighborhood just doesn't look like it once did.

"Wertzville Road is really built up," said Putt. "You have the Marysville Bank, Turkey Hill, and now they're doing a micro motel."

"The township just can't stop development because residents don't want it," said Gossert. "We have to abide by the rules and regulations of our zoning ordinance and our subdivision land development ordinance."

Township leaders predict even more growth near Wertzville Road, where they've extended sewer service.

"We can expect to see at least another decade, decade and a half of growth in that area due to that new sewer system," Gossert said.

Some residents don't think there's a large enough customer base to support all of the new businesses moving in.

"No, there's not going to be the people here," said Putt. "They're going to have empty buildings."

Most of the construction projects were already in the pipeline before the economy took a turn. Every year, on average, 175 new homes are built in Hampden Township, and that means about a three-percent increase in tax revenue for the township.

 

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