VILLAS – Lower Township Council passed a revised budget (https://bit.ly/3pKhZvP), at its June 7 meeting, that halved the proposed local tax-rate increase to one cent.
The adoption of the $30.7 million budget was delayed by a lack of revenue information from the state, regarding how American Rescue Plan monies that will be distributed to municipalities can be spent and accounted for.
Township Manager Michael Laffey said the municipality received direction June 4 from Local Finance Notice No. 2021-11 by the state Department of Community Affairs.
Lower was awarded $2.2 million, receiving half this year and half next year.
Laffey said several changes to the budget, due to the added funds, helped cut the proposed tax increase from two cents to one cent, including the amount being taken from the fund balance being reduced by $500,000; an additional $262,000 is available for capital expenditures, including police vehicles, in-car cameras for police vehicles, solar radar speed signs, computers and added security cameras for local parks.
Laffey said the purchases can be done without waiting for a capital ordinance and are fully funded in the budget, without incurring debt.
The amount to be raised by taxes was cut by $365,000, bringing the tax-rate increase from almost two cents to one cent.
The increase was attributed to reduced revenues from court fees, recreation, and state aid due to Covid. The 2021 budget follows a zero tax-rate increase in 2020.
