East Rockhill Township

Bridge Replacement Necessity Impacts 2012 Budget

 

**The Board of Supervisors approved the 2012 Budget on December 13, 2011.

The Board of Supervisors adopted a draft 2012 Budget totaling $3,496,950 and authorized advertising it for the required twenty day public comment period.   They will review all public comments and consider the budget for adoption in final form at the December 13, 2011 regularly advertised Work Session.

For the fifth straight year, the General Fund Balancing figure has declined.  This trend reflects the national and world wide economic decline.  Since 2007, $406,835 in revenues has been eliminated from the General Fund budget resulting in a 19% reduction in the budget.   The reduction has come from a declining earned income tax base, declining real estate transfer tax, declining building permit fees and reduced or eliminated state funding.   In addition to making hard choices about staff reductions and cost cutting, the Township continues to look for new sources of revenue.  In recent years, the addition of cell towers on Township owned property has added monthly rental income.  This year, the Township is going to sell advertising spots on the Township’s E-news and website. 

The Township-wide budget figure of $3,496,950 is $126,425 higher than the 2011 budget.  The main reasons for this relate to capital projects and asset management.   The Township received a bridge inspection report for Rockhill Road Bridge over Three Mile Run that gave the bridge a “Priority 1” rating.  Portions of the stone masonry have begun to fall into the creek and the Township has already taken the step of placing barriers to reduce the bridge to one lane of traffic.   The next step will be closing the bridge.   The Township took steps to get the bridge listed on the Local Bridge Bill which will make the project eligible to apply for a state funded grant to reimburse up to 80% of the construction cost.  However, the Township needs to complete the project first and then apply for the grant.   The Township plans to borrow $1,000,000 to finance this project and is proposing .65mill tax increase to pay for the financing.  This amounts to a $26.00 increase for the average home owner.  The tax will be eliminated when the debt service is satisfied.   The second factor in the budget increase relates to budgeting the depreciation cost of assets of the Sewer Fund and Driving Range Fund.

The total Real Estate Tax rate is proposed to be 8.135 mills, or approximately $325.00 for the average homeowner.  The $325 per average assessed property is divided amongst General Fund ($209), Fire Protection ($40), Police Head Quarters Debt Service ($50) and the proposed Infrastructure Debt Service ($26).  No increase in sewer rates or street light assessments is proposed.

During the Public Review Period between November 15th and December 13th the draft budget is available for review.  Residents are encouraged to examine the budget and provide feedback or commentary.    The Budget will then be considered for adoption at the December 13th 2011 Work Session.