L.M. Twp. 2012 Budget Approved; For 1st Time in 6 Years, No Real Estate Tax Hike

The Lower Merion Board of Commissioners on Wednesday approved the 2012 fiscal year budget by a 12-2 vote, but several commissioners cautioned that the included measure calling for no real estate tax increas may not be sustainable in the future.

It is the first time since 2006 that there will be no real estate tax increase in teh township, said Commissioner Scott Zelov.

“Finally before me is the proof that a 0 percent tax increase is an achievable event,” said Commissioner Philip Rosenzweig. Rosenzweig said he was “extremely pleased” and hoped that the new budget would set a precedent.

Passed shortly before midnight, the approved ordinance sets the 2012 real estate tax rate at 4.19 mills on each dollar of assessed valuation—unchanged from 2011. Commissioners Jenny Brown and Lewis Gould Jr., Republicans both, voted against the ordinance.

At 4.19 mills, a homeowner of the average assessed single-family, detached house in Lower Merion (a $361,000 home) would have a tax bill of $1,513 in 2012, township officials have said at previous meetings.

“There are certain costs that make Lower Merion Township what it is, that we need to thing about maintaining.”—George Manos

According to the township “citizen’s summary” of the budget, the 2012 revenue is budgeted at just over $54.2 million, a 1.5 percent increase, or an additional $818,370 when compared to the 2011 budget.

The 2012 expenditures are budgeted at about $55.65 million (a 1.6 percent increase compared to last year) and are expected to exceed revenue by $1.45 million, requiring a budgeted drawdown of the fund balance.

Gould said he did not want “taxpayers to be misled that because there’s no tax increase, there’s no increase in spending,” and called the budget’s spending increase “significant.”

Gould also criticized the 2011-2014 Lower Merion Workers Association contract for 206 non-union township employees, which he said had “extraordinarily high increases in pay and benefits.” (Gould voted against the contract .)

Though Zelov supported the budget and the 0 percent tax increase, he and other commisisoners raised concerns about its sustainability beyond 2012. He added that the deficit spending of $1.4 million “is of great concern, because what are we going to do in 2013 and 2014?”

Commissioner Daniel Bernheim said “serious work needs to be done on the revenue and expense sides in upcoming years.” Along with reducing or eliminating deficit spending, the board needs to take a look at the Equipment Fund, as well as debt service, which make up 16.7 percent ot the general fund, Bernheim noted.

Commisioner George Manos said it was a “good budget” and was happy about the lack of a real estate tax hike. But he too cautioned it was probably not possible to continue if the board wanted to maintain the same quality of township services.

Manos said three things make up the budget: “revenues, expenditures and I would like to add 'quality of the township.' There are certain costs that make Lower Merion Township what it is, that we need to thing about maintaining.”

Amendments to the budget

During a special board Finance Committee meeting earlier in the evening, commissioners discussed three amendments to the budget, which were recommended by the committee and later approved by the full board:

• $5,000 was added to the budget as a General Fund contribution to outside agencies for the New Horizon Senior Citizen Center.
• $1,000 was added to the budget as a General Fund contribution for the annual HARB Awards Program, which was known in recent years as the Historic Preservation Awards.
• $21,896 was added to correct a computational error, enabling the annual contribution for the township’s volunteer fire companies to increase 3.5 percent, as planned for in the budget.

Other Business

The commisioners also approved a $174,686 contract to Team Clean to provide janitorial services to 12 township facilities.

The board approved the contract as part of the consent calendar. Earlier in the evening, the board’s Finance Committee unanimously recommended the contract, for Jan. 1 through Dec. 31, 2012.

The township retains the option to renew the contract for three additional, 12-month terms.