Township To Hold Line on Taxes

 With a recognition that South Whitehall is not immune to the financial challenges that other municipalities are facing, township commissioners are preparing to vote on a 2011 budget that dips heavily into capital reserves but holds the line on taxes and fees.

Commissioners have been reviewing the budget, which will keep property taxes at 4.9 mills and garbage fees at $285 for 2011.  A homeowner whose property is assessed at $94,000 – the average assessment in the township -- will continue to pay $464 in taxes next year.

The commissioners are set to vote Wednesday at their meeting, which begins at 7:30 p.m. at the municipal building.

"It's a very lean budget," said township Manager Jon Hammer, who met with department heads early in the process to whittle down their wish lists. But, he said, it's a responsible one as well, providing for core services, such as fire and police.

General expenses, which primarily include salaries and benefits for township employees, are up, while the revenue from property taxes and the local services tax have remained flat, Hammer said. Revenue from the real estate transfer tax, generated by property sales, is down from 2007, to $440,000 annually from nearly $1 million.

Next year, the township plans to use $4 million, or half of its capital fund reserve, to balance the budget.

Though utilizing the capital reserve money is a concern, "it's a good thing to do in these circumstances," said Board President Brad Osborne.  The township does not want to affect the quality of services provided residents, nor set up residents up for a big tax hike if all township equipment failed at once because they weren't maintained.

He said officials will be "very watchful," so that reserves do not dip below $2 million. He said capital spending will be managed to meet critical needs, and where officials have discretion in spending, they will delay or eliminate spending.

 In commissioners' review of the budget, one issue was the cost of a new fire truck for the Woodlawn Fire Co. The township budgeted $380,000 for the purchase, but new truck specifications have boosted that potential cost to closer to $580,000. Commissioners are reviewing options to cover the cost, including the possibility of securing grants or re-designating funds from another area.

South Whitehall has not had a tax increase in 23 years.

Osborne attributed that to several factors:

• Implementation of a local services tax in 2009, which will bring in $609,000 next year.
• Good planning and development.
• A budget-conscious manager in Gerald Gazda, who retired earlier this year after two decades on that job.
• Success in gaining responsible contracts with unionized employees in the public works and police departments.
• Amusement tax revenue from Dorney Park & Wildwater Kingdom, which amounts to $1 million to $1.3 million annually.