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Finance Report For The July 23^rd 2002 Meeting
Issuance of 3^rd Quarter Estimated Tax Bills

 

As we have reported at previous meetings this years budget process has been extremely difficult. The budget was introduced March 12, 2002 calling for a local tax increase of approximately 9.5 points and the Mayor and Council applied for Extraordinary Aid in the amount of $730,000.00 to offset the increase. As reported at our last meeting we have received word that our application for aid was denied. The budget committee has met, and will continue to meet, in order to make amendments to the introduced budget in an effort to reduce the tax increase as introduced. We hope to adopt an amended budget within the next couple of weeks. Until the budget is adopted the borough will continue to operate under a temporary budget.

The fact that our final budget has not been adopted creates another problem. Tax bills cannot be sent out until a budget is adopted and revenues in the form of taxes are required to support the day to day operations of the Borough. In order to generate the cash flow required to meet our obligations we issued estimated tax bills for the third quarter of 2002. These bills are based on the requirements of the school and county as well as the local budget as introduced. The third quarter bill that you received in the mail over the weekend represents your August payment. You will receive a new bill later in the year that will represent your fourth quarter payment as well as preliminary first and second quarter 2003 payments. The amount of this fourth quarter payment cannot be determined until after the budget is finally adopted.

It is important to note that your total 2002 taxes will not be equal to the third quarter estimated tax bill multiplied by four, that would over state your total 2002 taxes. The Finance Committee, and entire Mayor and Council, are working very hard to make the appropriate budget amendments that would result in any tax savings while still providing a budget that meets all of the needs of the residents. Any savings that would result from budget modifications would be reflected in the fourth quarter bill.

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