Maple Shade Council Grapples with Budget Challenges, Eyes School Tax Deferral to Ease Tax Increases

The Maple Shade Town Council meeting primarily focused on the budgetary challenges facing the municipality, with discussions around potential revenue enhancements and cost-saving measures. The meeting saw a detailed examination of the proposed budget, which faces a 5.5 cent tax increase, potentially raising taxes by $90 for the average homeowner, with discussions suggesting a school tax deferral that could reduce this increase to $50.

0:05The council addressed the municipal budget’s complexities, highlighting a significant need for increased revenues to mitigate the proposed tax levy. Among the strategies discussed was the deferral of school taxes, a practice with historical precedence in the township. By deferring a portion of the school tax levy, the council aims to reclassify these funds, potentially increasing the surplus and reducing the tax burden on residents. This measure, if implemented, could lower the projected tax increase from 5.5 cents to 3 cents, translating to a more manageable $50 annual increase for homeowners with properties assessed at $162,000. The council reached a consensus on deferring $800,000 in school taxes, with plans to formalize this decision in an upcoming meeting.

17:26The discussions also delved into the challenges of balancing the budget amidst rising operational costs. Notably, the finance budget saw increases in salary and wages to accommodate three employees, while audit services costs rose due to additional budgetary assistance needs. Concerns about computer maintenance expenses were raised, attributing the increase to heightened cybersecurity requirements. Council members discussed the importance of implementing small, gradual tax increases annually rather than larger, less frequent hikes. This strategy aims to prevent sudden financial burdens on residents, with a suggested $30 annual increase deemed more palatable than larger sums.

0:05Amid these budgetary discussions, there was also a focus on potential new revenue streams. Encouraging the opening of cannabis businesses was highlighted as a future revenue source, with anticipated contributions to the municipality’s budget once operations commence. Additionally, revenue from construction code fees was projected to reach $250,000, although this figure was acknowledged as high, given state regulations prohibiting municipal profit from these fees.

17:26The council further explored the implications of losing a $375,000 cops grant, which the town would no longer receive. This loss came amid uncertainty about other grants, such as the Clean Communities grant, and the lack of additional federal COVID-19 relief funding. The absence of anticipated federal aid was a source of disappointment, as previous allocations had supported budgeting efforts in prior years.

34:03In their examination of budget elements, council members scrutinized various expenses, including the General Insurance Fund (GIF), which saw a significant increase attributed to an assessment cycle occurring every five years. This assessment was necessary due to numerous claims, including a substantial sewage break at Stony Run apartments. The Fire Department’s maintenance budget was also discussed, clarifying that these expenses cover equipment maintenance rather than vehicle upkeep.

The sanitation contract was another focal point, with the council noting the upcoming bidding process following a contract change in 2020. Past years witnessed significant cost increases due to post-COVID challenges in staffing and service delivery, with concerns about future budgeting given the potential for further rises in sanitation costs.

49:41As the meeting progressed, council members acknowledged the complexities of managing municipal finances, especially regarding collective bargaining agreements that limit immediate changes to employee compensation and benefits. Contractual obligations for police salaries and health benefits were noted as significant contributors to budgetary pressures, prompting discussions about reassessing service levels, such as trash collection, in light of cost considerations.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.

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