Based on preliminary 2014 budget talks, Salisbury Township residents may see an 11 percent hike in property taxes, or $33.25, based on the township average assessment of $207,817 for a single family dwelling.

The projected increase is based on a .16-mill increase from 1.42 mills to 1.58 mills (rounded off).

The hike is one option the township board of commissioners is considering. The board faces an ever-dwindling reserve fund, which is down to about $2 million from approximately $7 million in 2008.

"We have depleted that," Salisbury Township Manager Randy Soriano said of the reserve fund to commissioners during a special 6 p.m. Oct. 24 budget meeting.

"That's really due to not having enough revenue to support your government expenses," Soriano said of raiding the reserve fund.

The decrease in township revenue has been attributed to the nation's 2008 Great Recession and a decline in local real estate sales and construction, plus previous township board of commissioners' decisions to not raise taxes and, in some years, to reduce taxes.

Operating revenue for 2014 is projected to be $6,429,000, but expenses are projected to be $6,668,000 for a shortfall of about $239,000, according to township Assistant Manager-Director of Finance Cathy Bonaskiewich.

Bonaskiewich prepared several budget proposals for commissioners. "All those tax scenarios go into the general fund," Bonaskiewich said.

None of the scenarios have to do with the funding of the Allentown Public Library, the referendum for which is on the Nov. 5 election ballot.

"The library we should talk about after the election," township Commissioner Debra Brinton said.

If township voters reject the library tax, that money would essentially disappear.

"We don't see any of that money," township Commissioner James Seagreaves noted.

Soriano provided a "snapshot," as he put it, of township finances as of Sept. 9 when 2014 budget deliberations began in earnest.

The township realized $752,925 more than expected, including about $312,000 more in Earned Income Taxes, $180,000 in permits and $107,000 in refunds.

At year's end, the surplus is expected to be $445,000.

"We have a surplus. What do you want to use the surplus for?" Soriano asked commissioners.

"I would not recommend you use that to balance the budget. That's how we got into this problem," Soriano said.

"In two years, you're going to need $800,000 for new fire equipment," Soriano said in urging the 2013 surplus be put toward capital expenses.

The 20-year fire company equipment plan includes two new pieces of fire equipment expected to be needed in 2018, one piece in 2019 and one piece in 2020.

"At some point, you're going to have to raise your real revenue," Soriano said.

"For seven years, you've been depleting your fund balance," Soriano said.

"We have to start saving up for a major expense," Commissioner President James Brown said.

The projected 2014 deficit is prior to any trimming by the administration and commissioners, Bonaskiewich emphasized to a reporter for Salisbury Press following the Oct. 24 township meeting.

Township commissioners held a special 6 p.m. meeting to discuss the budget prior to the regular 7 p.m. start of the Oct. 24 meeting.

The commissioners will meet 6 p.m. Nov. 7 and 21 to discuss the 2014 budget, prior to the Nov. 7 and 21 regular meetings.

Only one meeting is planned for December, at 7 p.m. Dec. 19, when commissioners hope to approve the 2014 budget.

The .16-mill tax hike would provide $213,000 in additional operating revenue. However, that increase subtracted from the shortfall of $239,000 would still leave a gap of about $26,000.

The township board reduced taxes four times in the past decade: 2003, 2005, 2006 and 2008.

Taxes were increased last year for the 2013 budget up to the 10 percent reassessment cap.