Dec 13, 2018 2 min read

North Franklin Township supervisors Tuesday agreed to execute a sizable loan from a local business authority in order to pay two large bills that are due before the end of the year.

The $275,000 low-interest loan from the township recreation and business improvement authority is needed to pay debts and make a contribution to the police pension fund, and it must be repaid by Feb. 28, township solicitor Gary Sweat said.

“I asked for a list of outstanding bills and debts, and if you add that to the proposed budget, it does not balance,” Sweat said at a township meeting Tuesday.

He said the township is looking at a nearly $800,000 deficit by Dec. 31 that can only be erased by raising taxes or cutting expenses.

“It’s not good,” Sweat said Wednesday.

The township needs to pay $167,900 to satisfy its general obligation bond and $186,000 to make the pension fund payment, he said.

The township budget was hurt by the 2017 Washington County reassessment, which cost North Franklin $100 million in real estate value after rulings came down in tax appeal cases, he said.

This year, the township also paid more than $28,000 to investigate a sexual harassment complaint in the police department, money that was not included in the budget.

To erase the bills, the township would need to raise taxes by 2 mills, which would cost the owner of a house valued at $100,000 another $200 in a real estate tax bill, Sweat added.

The township has proposed a 2019 budget of $2.1 million with no tax increase. A special meeting is expected to be scheduled before the end of the year to adopt a budget.