This decision follows three budget hearings. The proposed spending plan was available on the township website and could also be physically inspected at the municipal building over the past 30 days.
At the current real estate tax of 7.09 mills, the annual tax bill is $647 for the average taxpayer. With an increase in millage to 7.74 mills, taxes will increase to $705 for the average homeowner next year.
In addition to real estate taxes, the Township imposes an earned income tax (0.5%). The average annual earned income tax payment per household is $415, and will remain unchanged. .
For the first time, the Township has imposed a fire tax set at 0.15 mills. Under state law, money collected through a fire tax must be set aside in a separate account and may be used only for the township's two volunteer fire departments.
In a detailed budget message, Manager Doug Bruce's cites several reasons. Under negotiated union contracts, wages have increased between two and three per cent. Health insurance costs have risen 8.7%. Debt service next year on four loans over the past nine years will be over $2 million. The cost of the pension funds have increased $100,000. Workers compensation insurance has skyrocketed 27%. Unfunded stormwater mandates will cost $250,000- 750,000 per year. Also, the Township can no longer count an any casino grants, upon which it relied for $250,000 per year.. Bruce describes the Township a "mature, nearly built-out municipality where annual revenues have not quite been keeping up with annual expenses for the better part of a decade."
There was no discussion before the budget vote from any of the Commissioners or the public.
In nearby Hanover Tp (NC), which is poised to adopt its 10th straight no-tax-hike budget tonight, Manager Jay Finnigan has credited their 0.50 mill fire tax as one of the main reasons. It enables the Township to plan ahead for major capital purchases without incurring debt. As a result, the Township has been debt free for the past three years.
"We're $17 million in debt, we have some fire trucks we need to purchase, hence my Yes vote," explained Commissioner John Merhotten. "I'd love to go through the budget with anybody and explain what we're not paying for."
The audience included NorCo GOP Chair Lee Snover, who left the meeting soon after the vote.
Hudak called the fire tax a "feel good" measure that won't really accomplish anything.
In other business, Township Treasurer Rosalia Italiano and a Wells Fargo Bank representative presented plans to relax the investment policy for three of the Township's five pensions. The police pension board has already taken that step with the $17.4 million police pension, but the remaining four pensions need the approval of Commissioners. As explained in a memo from Manager Doug Bruce, "The changes allow for a slightly less conservative investment policy – moving the maximum percentage investment in equities (stocks) from 40 percent to 60 percent (most likely it will actually be 50 percent to start)." The new policy would still ban commodity trading, short selling or option trading. There is no specific ban on hedge fund investments, which are risky investments designed to outperform the market.
According to Italiano, the Township pensions are shooting for a seven per cent return.
Commissioners are taking two weeks to consider the proposal. "If this thing goes South, the Township taxpayer has to make up the difference," complained resident Ben Hedrick. "I'm very uneasy about it."
They also voted unanimously to support an agreement with Bethlehem Area Public Library for a satellite library at the Coolidge Building, to be open three days a week. Commissioner John Merhotten, who is spearheading this effort, hopes it will be open at the end of April.
Commissioners heard complaints from resident Barry Roth about the Township Marshal, who takes a township vehicle home every night. He stated a resolution adopted years ago bans all employees from taking vehicles home, excepting the K-9 officer.
Roth also complained about a $8,800 bill for repairs to a Ford Explorer that was flooded out in heavy rains. Manager Bruce said the damages are covered by insurance, but Roth went on anyway, saying that everyone knows what areas are inundated by heavy rains.
"You just piss money away and nobody gets held accountable for it," he muttered as he returned to his seat.
Wow, democrats are really raising the taxes and spending money.
ReplyDeleteWells Fargo is selling it's Pension Division.
ReplyDeleteBarry Roth is right in that the township is merely pissing away money. Let me ask this question: On the monthly bills agenda, the public works crew was treated to yet another paid lunch simply for doing their job during the last snow storm, why??? The crew make a decent wage with healthy benefits. And, most likely are getting overtime so why, are the township taxpayers buying food for simply showing up to do their jobs?
ReplyDeleteCommissioners heard complaints from resident Barry Roth about the Township Marshal, who takes a township vehicle home every night.
ReplyDeleteAnother waste of money and the supervisors justify this as acceptable???? As a volunteer fire fighter, I never see the marshal respond to after hour calls.
Thank you Barry, please stay on them every meeting.....................
Where does the Marshall live, Jersey?
ReplyDeleteMr. Hudak seems to believe that the fire tax is a "feel good" manuever. I guess he feels that the alternative (kicking the can down the road, tell others to tighten their belts, borrow more money) is a better idea. For the last 10 years or so, new tax revenue has slowed to a snail's pace. The cost of providing services hasn't slowed, it has increased. When the opportunity to address these issues arose, the leadership chose not to raise taxes, in order to boost their re-election chances. This has come to bite them in the backside. Although it won't raise much annually, the fire tax is a good start to return to an improved financial standing.
ReplyDelete7% annual return on pension funds is an aggressive target. Many pension funds use these projections of income to mitigate the potential underfunded liability to the township.
ReplyDeleteIt's time to have some serious discussions regarding the sale of the money pit of a community center. It's only going to continue to bleed repairs and upkeep at taxpayer expense. It needs to go to a for profit entity and off the township books!
ReplyDeleteYou’re not going to have a serious discussion if you can’t even say who you are.
ReplyDeleteMr. Roth needs to understand what he can and can't question. Time for him to stay away from meetings.
ReplyDeleteMr Roth can ask any question he wants to and my hat off to him for questioning incompetents! Keep it up Barry, thanks.
ReplyDeleteActually he can’t. The Sunshine Act does not make him Inspector General or a Grand Inquisitor. He has the right to make comment, not grill people. He can do that before or after a meeting and then complain about repairs that are being paid for by an insurance company. Also, a years old resolution, assuming it even exists, does not bind subsequent Boards.
ReplyDeleteNo body on the new Wilson Borough Council wants to talk about the over 14% tax hike or the $1,40 per unit hike on the sewer rate. 2 years ago it was a 13% hike. Wait 13%+14%=27% another Allentown. Talk about where the money.
ReplyDelete