WESTAMPTON — Officials are looking at a $1 million shortfall in the 2010 municipal budget, and a tax increase may be needed to correct it.
The topic was discussed by the Township Committee on Wednesday at the first of three scheduled budget meetings at the municipal building on Rancocas Road.
“Part of the process is trying to find every single penny we can cut out of the budget,” Mayor Sidney Camp said. “It’s not going to be an easy process here. We’re just going to have to go line by line and see what we can do.”
The 2009 budget was $8,644,000, with a tax rate of $3.19 per $100 of assessed property value. In preparing the 2010 budget, Camp said only about $2 million of municipal funds would be left to pay for services and supplies after covering salaries. But he said the estimated cost for those services is more than $3 million.
“Cutting half our operating costs is going to be pretty tough to do,” Camp said.
When asked by residents if property taxes would be raised, the mayor replied: “There’s always that possibility. Nothing is off the table.”
He declined to comment on whether the township foresees layoffs or furloughs.
“We are not in a position to talk about layoffs right now,” he said.
The township’s surplus after 2009 is about $500,000, according to municipal clerk Donna Ryan, who said that amount is significantly lower than previous years.
“It’s the lowest I’ve ever seen it,” Ryan said. “We have always had at least a million or a million and a half in there.”
The surplus after 2008 was about $1.9 million, according to the 2009 budget.
Officials blame an upcoming townwide reassessment for a large chunk of the deficit. The reassessment, which was ordered by the county, is due to cost $466,000. The municipality will pay $93,200 annually over the next five years to complete the reassessment.
According to Ryan, homes and businesses were last assessed in 1995-96. Camp said the township tried to delay the reassessment but was unsuccessful.
“Every year for the last few years, we have asked for an extension to push it back,” he said. “This year, unfortunately, our requests ran out.”
The next budget meeting on Wednesday is likely to be closed to the public so that officials can discuss contracts. The third budget meeting, at 6 p.m. Feb. 10, will be open to residents.
BCT staff writer Mark Zimmaro can be reached at 609-871-8059 or at mzimmaro@phillyBurbs.com.
