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Budget Receives Final Approval; Rate Increase Held To 4.9 Cents
By Catherine Galioto
Township residents will pay a 4.9 cent higher tax rate than last year, now that the township approved its $71 million budget.
With the budget approved, the municipal tax rate is 90.2 cents for every $100 of assessed property value. The tax rate increase means the owner of a home assessed at $150,000 would pay about $74.50 more per year in taxes.
The initially proposed tax rate increase was 12 cents per $100 of assessed value. But the township council decided to dip into the surplus and defer its tax payment to the school district.
These two maneuvers lowered the tax increase more than 60 percent from the original proposal. Even with those measures, however, taxes are still more than last year.
Administration officials blamed years of zero tax increases, coupled with unavoidably rising expenses for employees' contracted pay raises and higher utility bills, as reasons behind this year's tax increase.
Mayor Dan Kelly's tax proposal and budget relied less on surplus than on previous years, when surplus funds were used to reduce tax increases.
While the majority of the council was happy to curb the increase at 4.9 cents, Councilwoman Kathy Russell cast a "no" vote, saying it was a bad idea to use surplus funds to keep the tax rate down. She argued that doing so would put the township at risk by depleting the surplus. Surplus funds also accrue interest, and taking from the surplus fund then doubly hurts the township financially, she suggested.
Other council members argued the surplus is restocked each time tax payments come due, because often, the township collects more tax payments than it expects. That money goes into surplus, to the tune of about $7 million each year.
Township Council President Stephen Acropolis argued, saying using surplus is not a bad idea. The worse option, he said, is expecting taxpayers to absorb a 12 cent tax rate increase.
"If you're not for using surplus, then you're for a tax increase of 8 cents, 10 cents, 12 cents," he said.
The township expects to collect $42 million in taxes. It will use $14 million of the surplus account.
Michael Liloia, chairman of the citizens budget advisory committee, worked countless hours with his committee and township officials to urge cost-saving measures for the township. He said going over this year's budget was hard work, and predicted what future budgets could hold in store for taxpayers.
Liloia said tax increases are inevitable, considering that each year, staff receives pay raises. And with health care costs rising, the public employees' health plans will mean, at minimum, a 10 cent tax rate increase over five years, Liloia said.
Acropolis said that this year the township worked hard to get the health care provider to keep bills low, which shaved 2 cents off of the proposed tax increase.
Councilman Michael Thulen said it was great to have the administration, mayor and township council working together to find ways to cut back on the tax increase.
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