VILLAS — When Lower Township Council introduced its proposed 2009 budget last month it included a 1.8-cent per $100 of property value tax rate increase but council reduced that number Monday by two-tenths of one cent.
Council amended and unanimously approved the budget.
“In light of everything that has gone one, I think it’s a remarkable budget if that’s all you have as an increase,” said Auditor Leon Costello.
Township Manager Kathy McPherson outlined budget cuts that reduced the tax rate:
• $51,500 to the police salary and wage line item.
• $3,800 to Social Security line item.
• Debt service was reduced by $32,875 because of interest on bonds. Originally, $180,000 was budgeted but that much was not needed.
• An adjustment of $2,540 to the reserve for uncollected taxes.
McPherson said new budget cuts totaled $90,715. Costello said that amount represented two-tenths of one cent in the budget.
Mayor Michael Beck said the budget will result in the loss of two sergeants’ positions in the police department by attrition and one administrative position in the public works department. He said the bulk of the savings would come next year.
“We’re looking ahead, we see what’s coming down the road at us and we’re moving now to prepare for next year,” said the mayor.
During public comment, resident Joe Winters suggested a hiring freeze. Beck said council went pretty far in cutting positions and the township was not hiring anybody without close examination.
Beck said he did not support a hiring freeze at this time. In order to have a zero tax increase, an additional $800,000 would need to be cut from the budget which could require as many as a dozen layoffs of employees, he said.
Councilman Glenn Douglass said he would not support any further reductions in the police department.
The local tax rate for the year 2009 is 36.5 cents per $100 of assessed value compared to last year’s local tax rate of 34.9 cents. Beck said the average township homeowner will pay $3,300 in taxes of which half goes to local schools.
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