LOWER PROVIDENCE >> At the Dec. 1 public meeting, the Board of Supervisors adopted the township’s 2017 budget. They are pleased to announce that the budget is adopted without a real estate tax millage increase. The Board of Supervisors thanked the staff for presenting a responsible spending plan for 2017 that provides quality services to their residents. The following are some highlights:
Lower Providence Township is projecting to end 2016 with a surplus of $216,251 in the General Fund, versus the budgeted deficit of -$306,931. Key areas that contributed to the year-end surplus were higher than budgeted receipts from the earned income taxes and real estate transfer taxes. This year represents the fifth consecutive year that the township has realized a surplus in the General Fund. This is due to a conscientious effort to monitor the revenues and expenditures throughout the entire year and get the most from their resources.
The $10,271,360 2017 General Fund Operating Budget includes a 2.73 percent increase in expenditures but with no associated tax increase for residents. The annual real estate tax bill for a homeowner with an average assessment of $167,402 is $295.82. The slight increase in expenditures is primarily due to contractual wage increases for police and non-uniformed personnel. Other township expenditures have remained relatively steady for administration, finance, tax collection, legal, energy, engineering, community development, pension contributions and commercial insurance.
The estimated revenue of $5,400,000 from earned income taxes for 2017 represents an increase over the projected 2016 year-end amount of $5,300,000. Although real estate transfer taxes are challenging to project, the budgeted amount of $475,000 for 2017 is $95,000 more than the 2016 budgeted amount of $380,000. Historic trends and estimates from the tax collector support the increase in these revenue categories for 2017.
Even without a real estate tax increase, the township is still able to invest in capital improvements. The 2017 budget includes investments in technology upgrades, website redesign, radio equipment upgrades, new police vehicles and a public works backhoe.
Beginning in 2017, the township will also be in a financial position to fund road reconstruction projects from the annual Highway Aid/Liquid Fuels revenue without the need to secure financing for them. This will now allow for a systematic approach to maintaining the township’s critical infrastructure.
Lower Providence Township is in a strong financial position as they enter 2017 based upon sound fiscal policies and transparent practices. With this positive financial position, the township moves forward with a strong commitment to providing excellent services and programs for their residents, providing for a safe and enjoyable community to live, and proactively supporting their business community.
The following is a summary of the adopted 2017 budget:
• General Fund $10,271,360• Library Fund $557,345
vHighway Improvement Capital Reserve $732,090
• Debt Service Fund $639,619• Liquid Fuels Funded Loans $194,064
• Capital Projects Fund $315,280
• Parks and Recreation Operating Fund $901,670
• Parks and Recreation Capital Fund $111,000
• Highway Aid Fund $1,034,083• Unrestricted Capital Fund $146,800
• Tree Fund $6,000• Self Insurance Fund $39,601
• Equipment Replacement Fund $5,000
==========Total All Funds $14,953,912