2023 Lawrence Township Budget Message
The challenges we face in our 2023 municipal budget are the challenges we all face as individuals; the rising costs of all things across many industries in a post-pandemic world, otherwise known as inflation. Fortunately, we are well positioned to meet this challenge because our budgets over the past several years have conservatively addressed our needs, reduced our debt[1], and maintained the services to the community at the levels we expect and demand. This year we planned a budget and our future on fiscally solid ground.
With inescapable increases across all categories of appropriations (i.e., costs) partially offset by an increase in ratables, a half year of a new cannabis tax, and a successful grant program,[2] we are still able to address serious public safety needs by funding three new firefighters and two new EMT positions[3] and recommend a budget that provides for a 2.75-cent tax increase. We maintain and increase our Surplus Fund[4] by using only as much as can be regenerated by year-end. By doing this, we can better support our high credit rating and enjoy the benefits of the best rates for financing our essential community projects and infrastructure improvements. Additionally, this year we plan to transfer $3,350,000 from our Surplus Fund to our Capital Improvement Fund to fund our future capital improvement projects to avoid paying higher financing charges from bonding for the work. Significantly, this transfer does not factor in the Amount to be Collected for Taxation.
The recommended municipal tax rate for 2023 is .6545 [".6270], which represents a 2.75¢ increase[5]. One (1) cent = $470,635.
The Amount to be Raised by Taxation in 2023 is $30,804,309.70 [$29,427,103.63], which is $1,377,206.7 over 2022.
ü The Levy Cap Bank available from 2021 and 2022 is $1,978,355 [$1,353,473], and we will use $0 to remain within the 2% tax levy cap. NOTE: The 2023 Recommended Budget is $3,477,645 [$895,916] under the Levy Cap and is available for "Banking." This addition to the 2021 and 2022 banks will leave a usable "cap bank" of $5,456,000 [$2,249,389] for future budgets.
ü The 2022 year-end Surplus Fund
balance is $20,687,139.52 versus a 2021 year-end balance of
$17,529,312.69, an increase of
$3,157,826.83
ü The Surplus balance remaining
available after applying an amount as anticipated revenue will be $10,772,139.52
[$10,679,312.69], an increase of $92,826.83 over the 2022 remaining
balance.
ü The cash reserve balance for tax
appeals is $6,219,491.18 [$6,219,491.18].
ü The decrease in outstanding debt
continues. The 2010 closing balance was $30,797,000. The
2022 closing balance is $13,210,850 [$15,631,000].
Fiscal strength is evident as $9,915,000 [$6,850,000] in Surplus Fund
used in the 2023 budget has been regenerated at the close of 2022.
Surplus Fund 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 2023, we recommend utilizing $9,915,000.00 from Surplus Fund, $20,276,842.93 in MRA, $830,000 in Delinquent Taxes, and $30,804,309.70 in Amount to be Raised for Taxes. These balance sheet categories equate to the municipal budget of $61,826,152.63.
s/Kevin P. Nerwinski 2/21/2023
NOTE to be included in a published article: The budget message and recommended budget are prepared by the Municipal Manager (and Chief Finance Officer) and presented to the Lawrence Township Municipal Council for review and consideration. The elected officials will review the proposed budget, consider the presentations by department heads and pose questions to the Municipal Manager and Chief Financial Officer, and, ultimately, decide whether to approve the budget as recommended or make adjustments they deem necessary and appropriate.
[1] We are on
schedule to be debt free at the end of 2027 if no new debt is taken on.
[2] 1) ELSA
increase; 2) Health Benefits increase; 3) Contractual increases to Salary &
Wages; 4) New Hires (i.e., three firefighter, two EMTs and two PW employees);
5) Increase in Uncollected Taxes; 6) Increase in Debt Service (principal and
interest/Capital Improvement Funding); 7) Increase in solid waste collection;
and 8) Increase in Public Employee Pension contributions; and Emergency
Dispatch Service incease.
[3] Multiple
hires for Fire and EMT positions is required so that we can create an
additional shift for each department. Less than these numbers will not
accomplish our goal. At this point, it is either all or nothing to
address this important need. NOTE: We are added two new Public
Works laborers to address increased responsibilities to maintain Brunswick
Avenue Streetscape, Hero Dog Parks, and our other community parks.
[4] This is
also known as Fund Balance on our General Ledger.
[5]
NOTE:
Figures in [ ] are 2022 amounts included for comparison.
