Open space tax might yield savings.
By: Lea Kahn
Searching for ways to trim a proposed 9-cent municipal property tax rate increase, Township Council members suggested using one penny of the 3-cent municipal open space tax to pay for parks maintenance and also eliminating the hiring of a fifth professional firefighter.
The proposals were offered by Township Councilmen Michael Powers and Greg Puliti at a special meeting Tuesday to review the $35.1 million municipal budget for 2005. The council also reviewed the budgets of the Recreation and Public Works departments.
And one township resident, concerned about the trend of spiraling tax increases, called on Township Council to tie future budget increases to the cost of inflation a proposal that Mayor Pam Mount said would not be feasible.
The municipal property tax rate would jump from 56 cents per $100 of assessed value to 65 cents. For the owner of a home assessed at the township average of $163,000, this would result in a tax bill of $1,060 in municipal taxes a $147 increase over the 2004 tax bill of $913.
Steven Groeger, the superintendent of Recreation, outlined his department’s offerings for Township Council ranging from programs for children and adults, to special events such as the Memorial Day parade, the Fourth of July fireworks display and Community Day.
The Recreation Department sets its fees so that it recovers 90 percent of the costs of children’s programming, and 100 percent of adult programs, Mr. Groeger said. This covers the costs of hiring referees for athletic events and supervisors and staff for summer camp, for example, but it does not cover administrative expenses. Fees are adjusted periodically, however, he said.
When Mr. Groeger pointed out that some towns charge "significantly" higher fees for recreation programs with the goal of recovering all of the costs, Mr. Guhl said Township Council could decide to change its philosophy and do the same thing. Lawrence’s approach is to recover incremental costs, he said.
The Recreation Department also is in charge of the nature center at the Rinck House, off Drexel Avenue next to the Drexel Avenue Woods. It costs about $53,000 to pay the naturalist at the outdoor education center, Municipal Manager William Guhl said. Mayor Pam Mount suggested that if the position were cut, volunteers could take up the slack at the Rinck House.
The Lawrence Senior Center also is under the care of the Recreation Department. When Councilman Rick Miller asked whether there could be a reduction in clerical help in the Office on Aging, Mr. Groeger said it would not be feasible. It would not be possible for the executive director to handle the workload, nor is it possible to depend on volunteers to help staff the office, he said.
Mr. Guhl said that if Township Council wants to make budget cuts at the senior center, the solution is to reduce either programming or the hours that the center is open. He agreed with Mr. Groeger that reducing staffing is not the answer.
Public Works Director Greg Whitehead also reviewed his department and its operations for Township Council. The 36-employee Department of Public Works maintains the streets including snow removal and leaf and brush collection as well as the parks and municipally owned buildings.
The DPW also has its own garage, where it maintains the cars, trucks and assorted equipment belonging to Lawrence Township, the Lawrence Township public school system and the Ewing Lawrence Sewerage Authority, Mr. Whitehead said. The township also mows the grass at the athletic fields at the seven public schools.
Although the township had acquired more land in the past 12 years, the staff has not changed, Mr. Guhl said. If the township laid off one DPW employee, some work likely would not be done, he said. The streets would not be plowed as quickly, for example, he said, noting that at one point during the recent 15-inch snowstorm, there were as many as 18 DPW snowplows on the road.
After Mr. Groeger and Mr. Whitehead finished their presentation, Mr. Powers reminded the rest of Township Council that it could reduce the 9-cent tax rate increase to 8 cents, if it decided to use one penny of the 3-cent municipal open space tax for park maintenance. State law would permit the township to use 1 cent for that purpose, he said. One cent on the tax rate is $266,200.
"Maintenance of our open space parks is being paid out of the general operating budget," Mr. Powers said. "For the 2005 municipal budget, maintenance of township parks totals $465,000. If the council were to approve the use of 1 cent for park maintenance, we can reduce the amount of the municipal tax increase by $266,200."
When Mr. Powers said the money is there and it should be used, Mr. Guhl agreed that it would be possible to use open space money for parks maintenance.
During the public comment portion of the meeting, Maple Avenue resident Paul Mott suggested enforcing municipal ordinances, such as the snow removal ordinance. Some residents do not clear the sidewalks in front of their homes after a snowfall, he said. The police should issue a warning, and then if property owners do not comply, they should be fined which would be a source of revenue, he said.
Mr. Mott praised Township Council for the close scrutiny that it has been giving to the proposed budget. Combined with the "enormous" tax rate increase proposed by the school district, "you just have to find a way to reduce it," he said of the tax burden. The school district has not officially announced its budget yet, but Schools Superintendent Max Riley said last week he hopes to keep the tax rate increase limited to 9 cents.
Michael Hughes of Hawthorne Place asked the council how it plans to eliminate the growing tax burden on the property owner. He asked about the future of the township if, in three or four years, there is a continued tax rate increase. He suggested it might lead to a decline in property values.
Mr. Guhl said he did not know whether taxpayers would support annual 10-percent increases in their property tax bills. In the past, property taxes generated by new development offset the increases but Lawrence has little buildable land left, he said.
When Mr. Hughes suggested that redevelopment of existing properties might be one way to increase revenue such as attracting another anchor store to the Quaker Bridge Mall, for example Mayor Mount and Mr. Powers said the township is planning redevelopment for the southern end of town. The Growth and Redevelopment Committee is focusing on such underutilized properties, Mr. Powers said.
Bonnie Galloway of Cobblestone Way told the council that annual tax rate increases of 10 percent are "unsustainable." At that rate, the property tax would double in 10 years, she said. The typical salary increase is 3 percent, she added.
Ms. Galloway asked the council to consider limiting the budget increase to the inflation rate. It may be necessary to squeeze the budget, she said, adding if it is necessary to lay off employees, it should be done.
Mayor Mount said the council would consider suggestions offered by the residents, but limiting budget increases to the inflation rate is not feasible. It is not possible to make across-the-board cuts in departmental budgets, she said. The council must have flexibility to meet residents’ needs, she added.