Pickled??

From the BCCT.

Towns work through economic downturn
By JAMES MCGINNIS

So anxious he couldn’t sleep, Northampton township Manager Robert Pellegrino walked into budget meeting after budget meeting but gave the community only two options — raise taxes or lay off cops.

When people stopped buying homes, the tax on real estate transfers in Northampton fell more than $600,000. Pellegrino said he had “no cushion.”

And if the troubles of Wall Street continue to hit small town Main Street, other towns across Lower Bucks could be in the very same pickle next year.

Communities throughout the area are bracing for significantly lower returns on their investments, less revenue from building permits and fees, and higher costs on everything from insurance to road salt and even bullets. (Some police are paying nearly three times as much for ammunition thanks to the war in Iraq.)

Facing a $1.1 million deficit this year, Bristol Township will draw from a “dangerously low” cash reserve to balance the budget. Township Manager Jeff Bartlett warned that the town could run out of money in two or three years. But Councilman Rick Pluta said he was more worried about the poor. “If we raise taxes,” he said, “that could be someone’s prescription drug bill for the month.”

Bristol Township and its sister to the south seemed polar opposites this budget season. Bensalem will continue to spend big (and offer tax rebates) thanks to $10 million in casino host fees from Philadelphia Park and a $61 million nest egg from the sale of its sewer system. Still, Mayor Joseph DiGirolamo was cautious about the future.

Investments that generated $3.6 million in 2007 will yield only $2.1 million this year, Bensalem finance manager Jack McGinley estimated. Still there’s enough money for the $250 rebate check for the owners of every home in town.

Bensalem started offering its rebates in 2007. The people of Falls will get rebate checks for the first time in 2009 — $100 for every property owner and $50 for every business owner.

But that might seem a pittance compared to the $5,000 “gift” checks headed to all those who own property in Tullytown. Landfill fees will allow the borough to continue to provide the rebate checks and a large number of services this year, according to the budget.

Tullytown property taxes pay for the borough administration but wouldn’t be enough to cover expenses for police, public works or street repairs, as budgeted for 2009. Tullytown’s reliance on landfill income was cause for concern when then-outgoing borough manager Andy Warren presented his budget in October. Landfill income could begin to taper off in two to three years, leaving the borough in a pickle, he warned.

Already pickled, Morrisville — with the third-highest municipal property taxes in Lower Bucks — had to raise them another $70 this year.

When Mayor Thomas Wisnosky found out there wasn’t enough money for new police guns, he gave up his $2,900 salary. Wisnosky said some of the department’s guns were more than 20 years old.

Still some towns are managing to make ends meet. With some of the lowest municipal taxes in the area, Langhorne, Penndel, Newtown, Lower Southampton and Newtown Township will go without a tax increase again this year.

After finally paying off a municipal bond, officials in Bristol wanted to lower taxes this year. But any savings the borough hoped to realize are needed to balance the budget, borough Manager Jim Dillon told his council.

Middletown raised taxes $29 for the average resident to pay off debt.

Lower Makefield raised taxes $10 for the average resident to give more money to the Yardley-Makefield Fire Co. Wrightstown avoided a tax increase, cutting from the budget a $200,000 salt shed.

Even Yardley started the budget process in the hole, but it was hardly dramatic. The borough council announced an $82 deficit, but ended with a budgeted $3.70 surplus. So the community has at least a little money to sock away for 2010.

BIG TICKET ITEMS

Despite the economy, officials in Lower Bucks will spend millions of dollars on big-ticket items this year.

Bensalem will contribute $4.4 million to a planned athletic center adjacent to its high school and $5.5 million to expand the police department.

Falls will spend $2.5 million on a bigger senior center and another $1.2 million for a boat access on the Delaware River near Pennsbury Manor.

Newtown Township will spend $2.6 million on athletic fields and $8 million on a new municipal complex.

Middletown will spend $2.7 million on a new public works building.

Bristol will also spend $2 million on renovations to its police and fire departments, using about $1.6 million in grants.

UPDATED WITH GRAPHIC