Cumberland holds line on taxes
CARMICHAELS – Property taxes will remain steady in Cumberland Township in 2016, although spending will be down as local officials brace for a drop in Act 13 drilling money next year.
The township’s supervisors voted Monday afternoon to advertise their preliminary $2.934 million sending plan that they expect to approve at their Dec. 7 meeting. Taxes will remain at 3 mills for property owners.
Another $2.351 million will be placed in the township’s capital reserve “rainy day” fund.
The lower overall expenditures and higher reserve fund are mainly due to concerns about a potential loss of Act 13 revenue – the township received $918,147 in drilling money this year – and the township is only budgeting to receive $375,000 this year.
“We don’t know what Act 13 (money) will be,” Supervisors Chairman Bill Groves said. “We’re going to see.”
The township also anticipates it will lose nearly $100,000 in property and earned income taxes next year because of the drilling industry pulling back in the area.
The largest budget expenditure will be $1.196 million on the public works department’s road improvements fund, although that represents a 15 percent decrease from last year’s budget proposal. Groves said they plan to tar and chip roads this year instead of paving them.
The township is also budgeting to spend $583,500 on the police department, although Groves said that figure is probably low compared to what the actual expenditure will be by the end of 2016.
The overall budget figure is lower than 2015, Groves said, because the department purchased a new police cruiser this year.
The budget shows an increase in the state’s liquid fuels allocation by 17 percent, with the township expecting to receive $310,127 next year. That money can be used on road and infrastructure improvements.
The township must pass its 2016 budget before the end of the year.