Lean 2010 Township Budget In The Works

Interested in how your local tax dollars are spent? Your last opportunity to hear a presentation of Tredyffrin's 2010 Budget and comment publicly is on November 30 at the next Board of Supervisors' meeting.

Supervisors are scheduled to vote that evening on whether to approve the preliminary budget as is or make changes to it. Before putting it to a vote, Budget Advisory Working Group (BAWG) chair Tom Colman will present his group's recommendations. BAWG's report makes balanced budgets a requirement, suggests no new township spending, and focuses on cost-cutting in every department and at every level. It recommends no tax increases. The report can be viewed online here.

Township Manager Mimi Gleason will follow Mr. Colman with an overview of the proposed budget. At $32.6 million, it is $2.9 million less than last year's. The budget brings spending in line with revenues, which are expected to be flat in 2010.

No tax increase has been proposed this year, though a $50 increase in the Sewer Utility Fee will affect approximately 9,000 homeowners, with additional fee increases planned for 2012 ($30) and 2014 ($34).

However, the Township Manager anticipates municipal tax increases will be necessary in future years to avoid further cuts in services.

Some of BAWG's recommended changes have already been adopted by the Township, including significant cuts in personnel. Twenty positions have already been eliminated--some from every department.

For 2010, further cost-cutting recommendations to be implemented include:
  • cutting employee benefits
  • putting a hold on most capital projects and spending
  • reducing road improvements
  • scaling back maintenance on township parks and buildings
  • eliminating some programs and increasing fees for others, and
  • reducing funding to our libraries and fire companies.
Capital projects funded by grants and federal stimulus funds, like Phase 1 of the sidewalks program, will continue as scheduled.

Next year’s township budget is being touted as lean and balanced - after two consecutive years of operating deficits despite tax increases. In both the 2008 and 2009 budgets, over $2 million was drawn from township reserves to balance the budgets – a practice that could not continue without damaging Tredyffrin’s credit rating.

Despite significant cuts in spending, a balanced 2010 budget relies on an automatic transfer from reserves to the General Fund of 10% of the revenue earned from large commercial sales this year. The budgeted amount - $642,000 – exceeds revenue projections by $207,000 and in essence, involves dipping into prior year reserves to offset current operating expenses.

You can read Ms. Gleason's budget overview and take a look at the complete preliminary budget here.

For a list of cost cuts planned for 2010 here is a handout from the Nov. 14 public meeting.

Tredyffrin does not impose an earned income tax, relying primarily on a real estate tax base. Discussion of earned income tax is the very last item in the BAWG report. For background on the earned income tax here is a handout from the Nov. 14 public meeting.

If you'd like to publicly comment on next year’s budget or just better understand how your taxes are spent, plan on attending the next BOS meeting on Nov. 30.