Taxes won’t rise in 2021 despite $75K budget gap
Township supervisors to draw on reserves to close projected deficit
NORTH COVENTRY » Despite a projected deficit of nearly $75,000, the draft 2021 budget the North Coventry Supervisors voted unanimously to advertise will not raise property taxes if it remains unchanged.
Township Manager Erica Batdorf outlined the $5,933,082 budget during the Nov. 23 meeting and said despite challenges brought on by the impact the COVID-19 pandemic has had on the economy, a tax hike is not necessary.
As the 2020 budget did, Batdorf proposed using reserves to close the budget gap and avoid a tax hike, which means the tax rate can remain at the current 2.85 mills.
The largest portion of the budget is the general fund, which calls for spending $4,913,636 in 2020. The open space fund, which calls for spending $684,380 will have a $48,820 surplus under the budget plan.
The liquid fuels fund, which comes from state gasoline taxes, is balanced at $321,566 despite an 8 percent decrease caused by people driving fewer miles during the pandemic shutdowns.
The township’s total assessed property value also dropped this year, by $1,606,404, according to Batdorf. As a result, keeping the millage the same as 2020 means the property tax will only generate $1,366,500 in 2021 as compared to this year when it raised $1,384,989 — a $17,489 loss in revenues.
In addition to reporting on the state of the township’s finances, Batdorf also recommended the merging of three capital accounts into a single account.
The budget accommodates the purchase of a new police car and new dump truck for the public works department as part of the system of regular fleet rotation and replacement.
The budget, which is posted on the township website, will be open for public inspection for several weeks and a vote on the final budget will take place next month.
As the 2020 budget did, Batdorf proposed using reserves to close the budget gap and avoid a tax hike, which means the tax rate can remain at the current 2.85 mills. The budget accommodates the purchase of a new police car and new dump truck for the public works department.