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2020 Budget Adopted; No Tax Increase

Posted on: December 10, 2019 - 12:05pm
Real Estate Tax Comparison Percentages

The Lower Providence Township Board of Supervisors adopted the 2020 budget at its December 5, 2019 public meeting. The budget holds the line on taxes. For 2020, the Township tax rate will remain at 2.087 mills.

A homeowner with an average assessment of $168,000 will continue to pay $351 in real estate taxes to Lower Providence. Only 5 percent of a homeowner’s total real estate tax bill comes back to the Township to fund all the services it provides.

The 2020 General Operating budget includes total revenues of $10,497,085 and total expenditures of $10,779,379, representing operation at a deficit of $282,294. The Township began 2019 with a General Fund Balance of $3.4 million and due to some one-time revenue generators ended the year with fund balance of $3.9 million. A portion of these revenues will be used to balance the 2020 budget, bringing the balance at the end of 2020 to $3.7 million.

In presenting the budget to the Board of Supervisors, Township Manager Donald Delamater said that the Township’s Unrestricted Capital Fund will be used for the capital projects included in the 2020 budget and noted that this is a trend that is not sustainable. He recommended establishment of a subcommittee to begin meeting in the first half of 2020.  “The committee,” Delamater said, “would review options to address the Township’s operating and capital budget needs moving forward not just for next year, but for the next 5 to 10 years, to put us on a sustainable path to meet our needs.” He further explained that this committee would provide the options and recommendations as part of the 2021 budget process.

The majority of expenditures in the 2020 budget remain consistent from last year with the exception of the normal annual personnel cost increases. Representing a large portion of the General Fund - 86 percent - these increases are people-related costs. “We are at a point where it is difficult to make cuts here without compromising services,” said Delamater.

Capital purchases and projects planned for 2020 include:
  • Technology Upgrades,  $7,200
  • New GIS Software, $44,900
  • Police Radio Equipment Upgrade,  $35,780 - Part of interest-free County loan
  • 3 police vehicles, $150,000 - Includes one hybrid vehicle
  • Dump truck/plow/spreader, $180,000 - Replaces a 1993 vehicle
  • Gunite repair projects, $19,000 - Alternative to costly stormwater pipe replacement