This year's $16.9 million spending plan in Bethlehem Township comes with a price. Taxes were increased 1.01 mills (18.4%) from 5.99 to a 7.09 millage rate. The good news is that this hike is about half of the increase originally expected. But it appear that there was no reason to increase taxes at all.
The reason for this is because of the recent sale of two major properties. Southmont, located off of Rte 33, was just sold for $53.7 million. Another commercial property off of Broadhead Road also sold for about $30 million. The transfer tax generated by these sales will mean a windfall of about $400,000 to the Township. That's about the same about of revenue that will be generated by the tax hike.
Commissioners were apparently unaware of these impending sales while finalizing the budget. But code inspectors had to know because they would be required to do inspections.
Will Commissioners open the budget and return this money to the taxpayer?
Don't hold your breath.
Today's one-liner: "The shortest way to the distinguishing excellence of any writer is through his hostile critics." Richard LeGallienne
Local Government TV
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Friday, January 29, 2016
18 comments:
You own views are appreciated, especially if they differ from mine. But remember, commenting is a privilege, not a right. I will delete personal attacks or off-topic remarks at my discretion. Comments that play into the tribalism that has consumed this nation will be declined. So will comments alleging voter fraud unless backed up by concrete evidence. If you attack someone personally, I expect you to identify yourself. I will delete criticisms of my comment policy, vulgarities, cut-and-paste jobs from other sources and any suggestion of violence towards anyone. I will also delete sweeping generalizations about mainstream parties or ideologies, i.e. identity politics. My decisions on these matters are made on a case by case basis, and may be affected by my mood that day, my access to the blog at the time the comment was made or other information that isn’t readily apparent.
It may be too late to reopen the budget. Don't they only have a certain amount of days from the 1st of the year to do that?
ReplyDeleteLovely.
ReplyDeleteCouple more so called training junkets for the force, more wasteful spending in the ppis department and whatever else they come up with on a whim, there you have it, it's gone before they have it in the bank!
ReplyDeleteIsn't it possible that the sale of this land is already considered in their 2016 budget. You budget based on the previous year's revenues and expected revenues. If you wold start bumping each individual line item on expected sales what happens next year when those sales are no longer in the budget. You now have an even larger gap because you don't have the $400,000 revenue but you have the $400,000 expense. That means 2017 starts with an $800,000 gap. This type of budgeting gets a lot of municipalities in financial trouble. If real estate transfer tax is higher this year, there will be a surplus and that could lead to a no tax hike next year.
ReplyDeleteof course they will keep the money and the taxes. Following donchez's lead with the hidden hirko tax. transparency and honesty, my ass
ReplyDeleteLet's remember that the Township had secured a $10M line of credit to fund capital improvements, such as fire apparatus, and roadwork. This $400k can go a long way toward not tapping the line of credit.
ReplyDeleteWhat did the township manager know and when did she know it? Two commissioners lost their seat because of the tax increase that was proposed and then leaked by her.
ReplyDeleteThe Commissioners wouldn't know shit. The business manager - the person who actually develops the budget (commissioners don't do this, they are clueless) would have known.
ReplyDelete8:00am wins the internet today.
ReplyDeleteWhere is the money gonna go, that is the question. They have a dyke with many holes. Where is it best to put it? Reserves, it is know reserves are at critical low points. Storm water? Broad head road? The streets in BT are terrible. Bonuses to management for lost vacation time. The community center need remediation. Maybe the township should still stay in the city library.
ReplyDeleteI bet most commissioners didn't even know that this was hitting the books. That's sad! I bet not even one knew including old timers Hudak and Nolan, forget about the other three, they are still figuring out how a meeting should be run . That's even sadder. But the crew in place lacks insight, knowledge and just common business sense that is needed to run a township.
But maybe, just maybe they will figure it out soon. But what damage will be done by then?
@9:34,
ReplyDeleteThere is no communication. That has been the problem for 30 years.
"Isn't it possible that the sale of this land is already considered in their 2016 budget. "
ReplyDeleteFrom what I've learned,No. it was actually a complete shock to the twp Manager.
I do not blame her or the business manager for not knowing, although I think someone in code sould have clued them in. This is one-time revenue. There should be a plan forthis money, and it should be a plan of the elected officials.
ReplyDeleteBernie @11:02,
ReplyDeleteSee 10:33. That is the reason for all of the dysfunction in BT.
Do a little report/research on the scam tax known as the Johnstown Flood tax of 1936. to this very day, we are still paying an 18% "hidden" tax on liquor purchases. it doesn't even show up on the receipt.
ReplyDeletebottom line, govt will continue to tax whether it is necessary or not. once the tax is "in place" it will never go away bc this same govt will uses it for whatever they want...just like the state does with the 18% hidden tax from 1936. this cash goes into a general fund. what a scam. now we see why there is so much fuss over turning over the liquor sales to private industry. They love that cash and I think the Johnstown Flood Tax is hidden in the markup of the wine, so the vast majority of patrons aren’t even aware they’re paying this tax.
is there any chance they will reopen the budget bc of this? is it too late?
since 1936 this hidden tax the state made almost 20 billion dollars on this scam to cover about 40 million dollars in damage to Johnstown.
You don't need to tell me or most of my readers to research the Johnstown flood tax.
ReplyDeleteWow, something Lord God Mikey did not know. Color me shocked.
ReplyDeletewent to the meeting BT last night. No mention of taxes in any manner. key discussions were on the library participation, the approval of Ms Davis' motion to allow public comments after a developers's presentation. i think i did hear her mention a 3 minute max if the crowd is large. the last topic i found interesting was a discussion topic on a "Citizens Audit". i appeared to be Mr Breslin's idea to form a volunteer committee to check how the township is managing things.
ReplyDeletei can only say "wow". it is reminiscent of that group formed by Ronald Reagan to get ideas from business people on running the government. i am not sure anyone would want to work here if this occurs. a lot more information is needed. i hope this is discussed before they act.