Proposed Township Budget Holds Line On Taxes...Again

South Whitehall Manager Jon Hammer presented a proposed 2012 budget to township commissioners Wednesday night that again holds the line on taxes and garbage fees.

Hammer, addressing the financial challenges that municipalities face, presented the budget at the first of three budget hearings, and commissioners began the weeks-long process of examining revenue, expenses and proposed capital expenditures for next year.

Under the proposed $18.8 million budget, property taxes would remain at 4.9 mills and garbage fees at $285. A homeowner whose property is assessed at $94,000 would continue to pay $464 in taxes next year.

"As a result of careful planning and fiscal responsibility, the current financial condition of the township remains good," Hammer said. But after more than two decades without a tax increase, he told commissioners, they will need to give "careful consideration" in coming years to raising real estate taxes or user fees.

Hammer said the township is not immune from the financial challenges of municipalities across the country in the sagging economy. He cited a National League of Cities report that showed cities are cutting staff, delaying infrastructure projects and raising fees in the face of declining tax revenues. In Pennsylvania, he said, hundreds of municipalities have either raised taxes or cut services, or both.

While expenses have increased, township officials said, revenue from real estate transfer taxes, licenses and permits, interest and grants have substantially decreased over the past five years.

Finance Director Linda Perry, who presented the details of the budget, told commissioners, "We've made it as lean as we can make it." 

A point of contention at the budget hearing was the $27,000 in contributions that the township has earmarked for seven organizations as follows:

* $1,500 for Lehigh County Emergency Response Team

* $1,500 for Clifford Park Senior Citizens

* $8,000 for Meals on Wheels of Lehigh County

* $3,000 for Lehigh County Senior Citizens

* $4,000 for Lehigh County Child Abuse Investigator

* $1,500 for Cetronia Senior Citizens

* $7,500 for Lehigh Valley Coalition on Affordable Housing (The coalition had requested $16,848.)

Commissioner Tom Johns questioned the amounts, primarily for the Lehigh Valley Coalition, saying that in tough economic times, the township should reduce the amount of the contributions. "I don't agree with telling our taxpayers where their money is going," Johns said.

Commissioner Howard Ellsworth, however, in supporting the amount of contributions, said the township has "a certain amount of social responsibility." And Commissioner Dale Daubert, also in support of the contributions, said the money would be a "good investment in mankind."

As it became clear that the other commissioners supported the contributions, Johns asked the board why it bothered to hold budget hearings. "We just agree with everything that's in here," he said.

However, Ellsworth said he simply had a different opinion than Johns on the value of the contributions and was expressing his viewpoint.

On a 4-1 voice vote, the commissioners approved the amount of contributions budgeted for the organizations. Commissioners Ellsworth, Daubert, Tori Morgan and board President Brad Osborne voted in favor of the amounts; Johns opposed.

The budget hearings continue next Wednesday, Nov. 9, at 5 p.m. at the township .