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LAWRENCE: $43.1M budget proposed

Township Council very quietly introduced a $43.1 million budget for 2014 Tuesday night, setting the stage for a May 6 public hearing on the spending plan.

By Lea Kahn, Staff Writer
   Township Council very quietly introduced a $43.1 million budget for 2014 Tuesday night, setting the stage for a May 6 public hearing on the spending plan.
   The 2014 budget, which is the first one to be prepared after last year’s township-wide property reassessment, sets the municipal property tax rate at 53 cents per $100 of assessed value. The owner of a house assessed at the township average of $281,970 would pay $1,486 in municipal property taxes.
   The 2013 municipal property tax rate was 94 cents, which meant the owner of a house assessed at the then-township average of $160,262 paid $1,507 in municipal property taxes. The difference between the two tax rates translates into a $21 savings for 2014.
   The amount to be raised by property taxes to support the 2014 municipal budget is $24.1 million, Municipal Manager Richard Krawczun said Tuesday night. This compares to $23.5 million for 2013. The amount to be raised by taxes for municipal purposes is $15,425 below the statutory 2-percent cap on increases to the tax levy.
   In addition to municipal property taxes, the 2014 budget calls for using $3.45 million in surplus funds as a source of revenue in the budget. This is $100,000 more than was used in the 2013 budget. Other sources of revenue for the budget include licenses, fees and permits, plus Municipal Court fines.
   Mr. Krawczun said the amount of outstanding debt has continued to decrease — from $30.8 million in 2010 to $26.6 million in 2013. This is a decrease of $4.1 million over three years, despite new debt that has been authorized by Township Council.
   Mr. Krawczun also pointed out that when grants were subtracted from the budget, the 2014 municipal budget has increased by $170,000 — or .40 percent — over the 2013 budget after grants were subtracted from that spending plan.
   ”The change includes an increase in the appropriation for the reserve for uncollected taxes of $131,708. Therefore, the increase in operations is $38,728, or .09 percent,” he said.
   The reserve for uncollected taxes is factored into the budget so that money owed to the school district and the county can be paid to them. Municipalities double as tax collectors for school districts and county government.
   Mayor Cathleen Lewis said Lawrence Township “weathered a difficult storm” over the past several years, and that Mr. Krawczun helped to make difficult decisions more palatable to the staff. Those decisions included layoffs of municipal employees.
   The 2014 municipal budget does not anticipate laying off employees. The number of municipal employees has declined from 213 workers in 2007 to 173 in 2014. The reduction in the number of employees was spread across many municipal departments.
   Councilman Stephen Brame said he was “very pleased and very proud” to see the work that went into preparing the budget. Economic conditions are still volatile, but the manager has given the governing body somewhat of a buffer for 2015, he said.
   Councilman Michael Powers commented that during the Great Recession of 2008-2010, Township Council was using surplus funds to offset the financial burden to residents. Replenishing the surplus account means there will be money available to offset the next downturn, he said.
   And Councilman Jim Kownacki also praised Mr. Krawczun for bringing in the budget below the mandatory cap. He said it was not easy “going up against the unions” during contract negotiations.