Nation-wide Recession Contributes to Bleak Township Financials
2009 Financial Report Summary at a Glance
The nation-wide economic recession has severely impacted East Rockhill Township's general revenues. Township Manager Anne Klepfer reviewed the 2009 financials at the April Work Session.
- -$439,100 deficit across all government funds
- -$207,725 deficit in the General Fund (Public safety, public works, sanitation, and debt service)
- Real Estate Transfer Tax dropped 38.4%
- Local Service Tax declined 23%
- Earned Income Tax declined 6.9% ($83,000)
Taxes and Miscellaneous Revenues dropped 11.1%
Real estate taxes, earned income tax, local service (emergency service) tax, interest and rents, and miscellaneous revenues dropped by 11.1%, resulting in a loss of $384,301 net of a .95 mill real estate tax increase.
To help off-set the loss of revenues East Rockhill has:
- Reduced expenditures
- Made staff reductions
- Deferred capital improvements
- Increased real estate taxes (2007 & 2009)
- Used "one time" revenues
- Depleted capital reserves
Looking Ahead in 2010
Although the Township cannot predict whether current downward trends will continue, the financials for the first quarter of 2010 indicate that revenues are slightly up, and that expenditures are level. The Township is hopeful that 2010 will bring back financial stability; however, East Rockhill Township is struggling to comply with unfunded state mandates, utility and commodity cost increases, maintenance responsibilities with reduced staff, and reduced funding. The Township is appreciative of the community's patience during these trying economic times.
