Budget on track, no tax hike expected

Final budget workshops set for Oct. 25, 26

MONTGOMERY TWP. » With only two months left in 2017, Montgomery Township’s books look likely to be balanced once again, as the township’s 2018 budget continues to take shape.

“Everything is where it should be, and we’re not anticipating any tax increases for next year,” said Finance Director Ami Tarburton.

As of September 30, the township’s general fund cash balance stood at $5.88 million, an increase from the $5.77 million the same account had at the same time last year.

“The general fund balance is up 2 percent, or $110,000 from this time last year. As you can see, the fund balance is trending very close to our numbers from 2016,” Tarburton said.

Total township revenues as of Sept. 30 have increased slightly, and Tarburton told the township supervisors Monday night that the increase is due largely to a decision made last year, after the township refinanced a bond borrowing initially taken out in 2013 for construction of the township community and recreation center. At that time, according to Tarburton, staff suggested and the board approved shifting the portion of real estate tax millage dedicated to debt service into the general fund, to pay down the increased balance from the refinancing.

“The general fund revenues are up 5 percent in total, which is mostly attributable to the redistribution of the real estate tax mill-

age from the debt service fund,” Tarburton said.

“In 2018, that tax will be to the general fund again, and then that debt service fund balance will be down to where it needs to be,” she said.

Two revenue categories are showing slight decreases over 2016 levels: earned income tax revenue is down by roughly $75,000 from last year’s levels, which Tarburton said is due to a one-time windfall collection of roughly $200,000 in early 2016. Mercantile tax revenues are also down by roughly $102,000 from 2016 levels, and Tarburton said while data is still being analyzed, that decrease is likely due to larger trends of consumers shifting to online shopping that are not unique to Montgomery Township.

“In summary, total revenues have increased, even though some specific revenue sources are down, which shows the benefit of the township’s diverse revenue streams,” she said.

“As for expenses, we are up less than one percent from 2016. There’s a few ups and downs, but overall, less than 1 percent,” Tarburton said.

On the expense side, total expenses have increased in the township’s finance and IT category, at $661,896 in 2017 compared to $633,793 in 2016, and the police department, $4.54 million in 2017 versus $4.39 million in 2016. Those increases have been nearly entirely offset by decreases from the administration department, down from $1.04 million in 2016 to $985,000 in 2017; the code and planning department, from $616,696 in 2016 to $594,729 in 2017; and Public Works, down from $1.43 million in 2016 to $1.37 million this year.

“Total expenses are only slightly increased from 2016, showing the township’s commitment to cost containment,” Tarburton said.

“Overall, the 2017 financials are performing within budget parameters, in both the revenue and expense categories,” she said.

Montgomery Township’s supervisors next meet at 8 p.m. on Nov. 13 at the township administration building, 1001 Stump Road.