Upper Makefield Township

As Upper Makefield Supervisors review their 2010 Preliminary Budget,  an effort to stem reliance on cash reserves calls for a 2 mil increase, which translates into approximately $145 more in Real Estate Tax per household.

Despite cuts in staff, insurance cost savings, and trimming planned capital expenditures and equipment, the increase is needed to rebuild cash reserves that were drawn down by $1.7 million over the least two years.

The 2010 Preliminary Budget takes a prudent approach to managing a sharp decline in revenue over the past two years, in four major categories:

1. Earned Income Tax down 16% from 2008 levels.
2. Real Estate Transfer Tax down 41% from 2008 levels and 56% from 2007 levels.
3. Interest Income down 56% from 2008 and 78% from 2007.
4. Building, Electrical and Plumbing Permit Fees revenue down 35% from 2008 levels and down 51% from 2007.

In addition, higher pension obligations and diminished state funding has forced the township to rely on cash reserves to balance the General Fund budget.

General Fund Balances 2008 and 2009

The 2010 Budget also includes these cost-trimming measures:

• Eliminating three vacant staff positions
• Reduced insurance costs
• Trimming planned capital expenditures by 25 percent
• Limited spending on equipment for all departments

2 Mil Real Estate Tax Increase Proposed

Even with these proposed cost reduction measures, the General Fund needs additional revenue to avoid completely depleting cash reserves. Maintaining a reasonable fund balance is important in order to prepare for unforeseen circumstances or negative economic conditions.

To address the declining fund reserve, the 2010 Preliminary Budget proposes a two mil increase in Real Estate Tax for General Purposes.

The average assessment of a residential property in Upper Makefield Township is $72,426. The two mil Real Estate Tax increase would increase the average tax payment by $144.85 per year.

Budget Process

Over the next month the budget review process will continue as follows:

• November 18, 2009 – Board Authorization to advertise Preliminary Budget
• November 26, 2009 – Advertisement for public inspection (20 days prior to adoption)
• December 16, 2009 – Official adoption of Final 2009 Budget 

Download the Budget

Township Manager Stephanie Teoli’s November 4, 2009, preliminary budget presentation includes details of proposed revenues and expenditures for the township’s 16 funds, including the roughly $6.1 million General Fund budget. The total budget anticipates nearly $24.9 million in revenues and $16.6 in expenditures, and anticipates maintaining a fiscally sound reserve.

Both documents are PDF files.

• 2010 Budget Message (Summary)
• 2010 Preliminary Budget (Spreadsheet)