By MELISSA DIPENTO
The word from Cherry Hill officials is that the budget process is starting to look up.
After a few years of economic turbulence due to reduced state aid, an increase in mandated pension costs and township tax appeals, among other things, the township is looking forward to a more navigable 2012 budget process.
“Things are getting better. We’re implementing progressive and proactive policies, but there are still economic challenges, and we’re meeting those head on,” said township spokesman Dan Keashen. “We’re hopeful this puts us on a more sustainable course.”
The 2012 fiscal year budget will be the last for Mayor Bernie Platt, who’s served as mayor since 2002.
The township announced last month that the preliminary tax levy, or the amount to be raised by taxpayers, is $44.7 million dollars.
The budget will be ready for adoption in September. But while you’re waiting, here’s a look into what you might expect in the next budget.
In Cherry Hill, about 14 percent of the property taxes you pay go to the township, to fund things like the police and fire departments, trash collection, the public works department, 911 calls and so on. Keashen said the average assessed home at $140,000 will likely see somewhere in the neighborhood of $1,285 in taxes owed to the township for 2012.
The township currently employs 291, down from 351 in 2006. Keashen said the township does not plan to include any layoffs as part of this year’s budget, which would be the first time in four years the township had no staff reductions.
The township’s got a few things going for it this year that add some revenue to the budget.
The new trash contract, now eight towns strong, aimed at driving down the costs of collection, saves the township about $600,000 annually, Keashen said.
Energy costs are down township-wide, especially at the Department of Public Works building, where the roof has been transformed into a 100 kilowatt solar panel system, which now subsidizes 40 percent of the total electric bill, Keashen said.
Keashen also noted a decrease in health care costs for employees and the shift to 12-hour workdays for members of the police department have yielded significant savings.
Despite these alternative ways of generating savings, some budget obstacles still linger.
The amount of pension contributions is up $700,000 since last year at $5.9 million. Keashen said this cost accounts for close to 10 percent of the township’s budget.
The trend also continues upward in tax appeals the township is facing. Last year, Cherry Hill reported $5.9 million in tax appeals.
The township is also paying $1.35 million this year for a county-mandated tax revaluation. The purpose of the revaluation, township officials said, is to ensure a fair and equitable redistribution of Cherry Hill’s tax levy, giving all residents their fair share of the township’s tax burden.
Even with many budgetary decisions yet to be made and finalized, Keashen said the mayor and township officials are anticipating a smooth process this year.
“It’s a very tough process. At the end of the day, we hope to have a more solvent budget put together,” Keashen said. “The mayor believes he’s passing off a very healthy town hall.”
Stay tuned for updates as more details of the budget become available.
