LEWISBURG — Borough Manager Chad Smith is juggling numbers.
His preliminary draft of the borough’s budget for 2010 was presented to finance committee members Monday, and his projections show that without a tax increase, the borough may be putting itself in a precarious position heading toward 2011.
“I have been very protective of council’s desire to look at no tax increase this year,” he told committee members Kathryn Morris and Nora Fluent, who also are council members. “But I wouldn’t be doing my job if I didn’t recommend something.”
Finance committee member Trey Casimir was absent.
Morris asked: “If there is no tax increase, what are we taking away from the community?”
The answer may be nothing — in 2010.
“I’ve got everything covered,” Smith said, “but the carryover is not enough.”
The next budgeting season, for 2011, he said, would come up short.
Smith indicated he feels comfortable with a carryover of $300,000. His projections show a figure closer to $100,000, which may be too little wiggle room when the budget must take into account a number of unknown factors, such as insurance costs and costs of leaf and snow removal and tree-trimming.
In addition, there may be promotions in the street maintenance department because of a retirement, and there’s the planned merger of the borough and East Buffalo Township’s police departments. Merger costs are unknown.
Another unknown is whether the total taxable property in the borough has increased or decreased. Borough officials must wait for Union County to inform them on things that affect that number, such as new construction or properties entering tax-exempt status.
Lewisburg’s property tax is 5 mills. A mill is $1 per $1,000 of assessed property value. At 5 mills, the borough tax on a home valued at $100,000 is $500.
Smith said he could find areas to cut expenses, but they wouldn’t yield any big savings. He said he would have more solid numbers in several areas by next week when he presents a version of the now 53-page document to the full Borough Council. That will be at its work session at 7 p.m. Oct. 13.
He said the October draft will be for “talking points,” and the November draft will be “it.”
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