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| Andrew Freda |
Finance Director Andrew Freda went through the numbers, and also submitted a detailed report, outlining next year's budget. The most troubling aspect of the financial plan is that it spends $1.6 million more than it takes in. This shortfall will be made up by taking money from the fund balance On paper, the fund balance is projected to drop $2 million over the next year and end at just $1.46 million. Funds on reserve will only be 10% of the budget. Freda stated that the reserve should be between 12-18%.
Freda did explain that, in budgeting, revenues almost always come in higher than anticipated and expenses are less. So the Township's actual fund balance next year may be higher than is projected.
The Township's largest revenue source is Act 511 taxes, which consist of transfer taxes, earned income taxes and business mercantile taxes. These provide 31% of the Township's revenue. Real estate taxes, the second largest revenue source, brings in 27% of the Township's income.
The biggest drain on revenue is personnel. Ten years ago, the Township had 93 employees. Today, there are just 85 represented by three different unions.
Another major expense is health care. It is projected at $2.1 million next year, which is just two per cent higher than it was this year.
The Township will also pay $1 million into its pension, with the state kicking in another $500,000.
Unanimously, Commissioners authorized that the budget be advertised. A copy will be available online and at the Municipal Building.
12 comments:
No mention of the money pit AKA, Community Center?
It's time to start discussions on the township ridding itself of the ongoing expenses costing taxpayers!
They haven't raised taxes in 6 years. What the fuck is wrong with you, gramps? If anything, they should be raising taxes slightly and adding other amenities for the residents.
Just another episode of "kick the can down the road". Hmm...there are 3 seats (a majority vote) up for grabs next year. Time for someone who is not afraid to tell it like it is, instead of worrying what it takes to get re-elected.
Agree 1039
Holding the line on taxes is not always a good thing especially if it eventually leads to a Lehigh County-like enormous, necessary double digit increase.
Also, watch those school taxes, they're the nasty ones.
Am I to understand that such a usually well-managed municipality still offers defined benefit pensions?
More trouble ahead.
VOR
I suspect that the police pensions are defined benefit, but do not know that.
10:39 Good luck finding those people, they don't exist!!!!
@2:02,
They do exist, but people won't elect them because they tell the truth.
@2:02 correct
Am I to understand that such a usually well-managed municipality still offers defined benefit pensions?
Defined pension plans are perfectly fine as long as they are kept current and not dipped into.
The oligarchy has done a fine job brainwashing the compensation cutters to the point where they actually forgo logic and mathematics for politics.
Bethlehem Township is in great hands. When you give a message to the employees that there will be no tax increase, that's well managed. Ask and you will receive.
We are so lucky to have Tom Nolan, he understands finances like no one else, just ask him.
I beg to differ when anyone states that defined benefit plans are "okay". They are not okay.
They are glorified Ponzi schemes. They are fully dependent upon a steady stream of young workers paying into the plan, which is obviously not something that can be guaranteed. Legacy costs are avoided by all private sector firms. Only the public sector tries to get away with this because they have a back up plan: The Taxpayers.
Everyone should receive a benefit, but it must be a defined contribution plan which then leaves the organization with the retiree.
VOR
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