2021
Lawrence Township Budget Recommendation
The challenges and impact of the
world pandemic known as Covid-19 invaded every facet of society in big and
small ways. Although we begin this year
with the knowledge that there is a vaccine to fight this deadly virus and hope
that a better day will be upon us sooner rather than later, the pandemic’s
effects and impact leave many unanswered questions and our financial future
unclear. In crafting this budget, we are
mindful of the uncertainty, and, therefore, our approach is best described as
remaining calm in the “eye of the storm.”
In the coming months, and most likely longer, the short term and
long-term negative impact of the pandemic will reveal itself to us. These are truly unprecedented times as we
enter into 2021.
In 2020, the revenue consistently
generated through municipal operations decreased significantly due to the
pandemic, and we expect the same to continue well into 2021. Also, we anticipate a significant decrease in
commercial ratable and tax collection overall.
Once these factors become real and quantifiable, they will dictate our
approach in crafting the 2022 budget.
For now, we hold. There will be
no new capital projects (except for our annual road improvement program), and
staffing will remain consistent with 2020 levels.
With fiscally prudent financial
planning over the years and successfully implementing sustainable measures that
reduce operational costs, along with a strong grant-game, new commercial ratables
coming online this year, the sale of long-held unproductive township-owned
land, and a commitment to provide some relief to the taxpayers of this
community, the recommended 2021 budget offers a zero percent tax increase.
NOTE: The numbers in [ ] represent last year's amounts.
The
recommended municipal tax rate for 2021 remains .597 [“.597”] which represents a 0% tax increase [2% increase]. One (1) cent = $464,978.48.
- The Amount to be Raised by Taxation in 2021 is $27,760,451.69 [$27,644,378.44] which is $116,073.25 [$937,422.52] over 2020, the 2021 increase is attributable to the increase in assessed valuation, not via increased tax rate.
- The Levy Cap Bank available from 2019 and 2020 is $437,594, and we will use $0 to remain within the 2% tax levy cap. NOTE: The 2021 Recommended Budget is $1,055,263 under the Levy Cap and is available for "Banking." This addition to the 2019 and 2020 banks will leave a usable "cap bank" of $1,492,858 for future budgets.
- The 2020 year-end Surplus balance is $17,162,489.74 versus a 2019 year-end balance of $16,983,267.36, an increase of $179,222.38.
- The Surplus balance remaining available after applying an amount as anticipated revenue will be $10,312,489.74 [$10,133,267.36], an increase of $179,222.38 over the 2019 remaining balance.
- The cash reserve balance for tax appeals is $4,119,491.18 [$4,119,491.18].
- The decrease in outstanding debt continues. The 2010 closing balance was $30,797,000. The 2020 closing balance is $11,237,701.88.
Fiscal strength is evident as $6,850,000 in surplus (also known as Fund Balance) used in the 2021 budget
has been regenerated at the close of 2020, with an increase from the 2019
year-end Fund Balance of $17,162,489.74
from $16,983,267.36. Fund Balance is the excess in the following
Balance Sheet categories: Amount to be Raised by Taxation, Miscellaneous Revenues Anticipated
(MRA), Delinquent Taxes, Prior Year Appropriations Lapsed, and Miscellaneous Revenues Not Anticipated
(MRNA).
In 2021, our recommendation is to
utilize $6,850,000 in surplus, $14,017,682.80 in MRA, $830,000 in Delinquent Taxes and $27,760,451.69 in Amount to be Raised
for Taxes. The total of these balance
sheet categories equates to the municipal budget of $49,458,134.49.
The level of appropriations in the
2021 recommended budget was considered when shaping this budget, all within the
statutory limitations placed on revenues and appropriations. The following are significant changes in
appropriations leading into 2021:
Appropriation Increase/Decrease Reason
Salaries $405,000 Labor
Contract/Covid-19
Trash
Collection $45,650 Contractual Increase
Public
Employees’ Pension $68,160 Statutory Increase
Police
& Fire Pension $104,858 Statutory
Increase
Capital
Improvement Fund -$755,000 Reduced
Funding Capital Program
Reserve
for Uncollected Taxes $45,650 Statutory
Increase
1 comment:
You had me with the first line No tax increase whew that report is mind bending Congratulations
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