Log In


Reset Password
LEHIGH VALLEY WEATHER

Bethlehem Township: No tax hike budget proposed

For the sixth straight year, Bethlehem Township commissioners have proposed a no-tax hike budget. A taxpayer in a median market value home, worth $177,618, can expect to see the same $521 tax bill he or she saw in 2014. It's the lowest tax bill, too. County taxes for the same kind of home last year were $940, while school taxes were $4,428.

The millage rate is 5.99 mills.

According to Finance Director Andrew Freda, the most troubling aspect of next year's financial plan is that it spends $1.6 million more than it takes in. This shortfall will be made up by taking money from the fund balance. On paper, the fund balance is projected to drop $2 million over the next year and end at just $1.46 million. Funds on reserve will only be 10 percent of the budget. Freda said that should really be between 12-18 percent.

Freda did explain that, in budgeting, revenues almost always come in higher and expenses lower than anticipated. So the township's actual fund balance next year may be higher than is projected.

The township's largest revenue source is Act 511 taxes, which consist of transfer taxes, earned income taxes and business mercantile taxes. These provide 31 percent of the township's funds. Real estate taxes, the second largest revenue source, brings in 27 percent of the township's income.

The biggest drain on revenue is personnel. Ten years ago, the township had 93 employees. Today, there are just 85, represented by three different unions.

Another major expense is health care. It is projected at $2.1 million next year, which is just two percent higher than it was this year.

The township will also pay $1 million into its pension, with the state kicking in another $500,000.

Commissioners unanimously authorized that the budget be advertised. A copy will be available online and at the municipal building.