South Fayette officials are continuing to negotiate new contracts with the township's police and public works departments, as both of their current pacts expire on Dec. 31.

Commissioner Robert Milacci said he has positive feelings regarding the ongoing police contract talks and expects the issue to be settled either by the end of the year or by early 2008.

"There's been a good exchange of information."

He said there may not be progress on an agreement until a new board of commissioners take their seats in January.

"That would significantly affect the long-term health of the township," said Milacci.

One issue being negotiated between the two parties is a new health care plan. Milacci said the plan offered to employees includes no fewer benefits and would enable the township to fix long-term costs.

He said Michael Hoy, township manager, would bring in an independent consultant to discuss health care alternatives with the public works department.

"There are some overriding issues. We'll defer this to next year."

Solicitor Bob Garvin is representing the township in the negotiations.

Tax name change

South Fayette commissioners have approved advertising an ordinance to set the township's Local Services Tax (LST) at $52 starting in 2008.

The LST was formerly the Emergency Municipal Services (EMS) tax.

Its moniker was changed to comply with a new state law, Act 7 of 2007.

South Fayette, Bridgeville and Scott were among the local municipalities that did not initially raise the $10 EMS tax when permission was granted from the state legislature to do so in 2004.

If the change is approved by commissioners, all persons employed in the jurisdiction would pay the $52 tax.

Under the reworked law, employers can collect the $52 tax over the course of the year instead of collecting it in only one lump sum in January.

Also, the income threshold for exemption from the tax has been raised from $8,000 to $12,000.

Act 7 requires municipalities to use at least 25 percent of the LST revenue to fund emergency services such as police, fire and ambulance.

The remaining amount can be utilized for road construction or for property tax relief through implementing a homestead or farmstead exemption.