Through a series of budget preparation meetings this fall, South Whitehall administrators and commissioners have determined a tax increase will be necessary to balance the 2015 budget.

The township has prided itself on being able to avoid increasing taxes since 1989, but costs have been rising while revenue remained the same or even less due to inflation.

Director of Administration Howard Kutzler commented on the increase at the Nov. 19 meeting.

"We have to do this to provide a level of service this township expects," Kutzler said. "The increase for the average homeowner will be $168."

Commissioner David Bond provided some background on the decision.

"The last two years, the township manager said we would need a tax increase," Bond said. "We were able to move things around to avoid it. We can't do anymore. We cut as much as we could."

Director of Finance Lenore Horos said a 0.6 mill, equal to a 33-percent increase, will enable the township to produce a balanced budget in 2015.

She said the biggest challenge is a $1.5 million deficit in the general fund.

Horos noted the township began this year with a lower opening balance than projected mainly due to higher than anticipated pension costs.

The harsh winter brought extra expenses for snow removal and employee overtime, while health insurance costs continued to climb, and a few unexpected road projects had to be undertaken.

Horos said the 0.6 mill increase will bring in $1.4 million to apply toward the deficit, and some cash carryover from this year will help to mitigate the shortfall and enable a balanced budget in the new year.

The current tax rate is 1.64975 mills.

This year ,the township obtained a $3 million loan for capital improvements. Half was designated for 2014; the remainder for 2015.

Horos said the cash outlay for debt will be $100,000.

Board President Christina "Tori" Morgan commented on the tax increase.

"We have done our very best to avoid a tax increase," Morgan said. "We have skyrocketing pensions and other costs, but revenue stayed the same.

"We want to maintain the quality of services our businesses and residents expect. There is no fluff in this budget.

"We want to be fiscally responsible and provide excellent services."

The budget is available for public inspection. Commissioners are expected vote on the spending plan during the Dec. 17 meeting.