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How to Overcome the Township Budget Deficit

  • rcb9000
  • Apr 10
  • 5 min read

Updated: Apr 14

Finance 101 teaches us that whether at home, or at the township level, expenses can not exceed income year after year without disastrous consequences.


HOWEVER, slashing expenses without careful and non-emotional study will typically make the matter worse. In almost every case, deferring or ignoring proper maintenance and repairs will end up costing the taxpayers even more in the long run as our facilities continue to deteriorate, and costs continue to increase.


It is truly a "Pay Me Now - or Pay Me Later" situation.


In our recent post Covid years many Bucks County Townships and Boroughs have faced significant financial challenges resulting in municipal budget problems In a similar manner, virtually every expense line of our township budget has been impacted by the continual increase in expenses for heat, light, and electric, fuel for our trucks, salt and cinders, large and small equipment purchases, for maintenance and repairs to our roads and buildings, and purchase and repairs to our road maintenance equipment. Deferred maintenance and repairs always seems to increase expenses later.


However, as a low growth community, Haycock has experienced little or no corresponding increase in revenues through an increase in tax revenues, or by increasing the tax rate - (which few residents favor), from other means such as increased fees, or through state grants and gifts.


The suggestion that we can simply slash all budget lines by 10%, or some other arbitrary percentage - always fails, and "kicking the can" always winds up costing more over time.


But - the path to township prosperity is possible through strategic planning and a united program of community involvement.


By understanding the causes of these deficits and development of implementable solutions, townships can not only recover from fiscal distress, but again thrive once again. We cannot shout or argue the problem away, and casting blame and lamenting the situation at every monthly meeting does absolutely nothing to rectify the situation!


To overcome the Township Deficit we must first study it, then understand it, and then deal with it.


Township deficits often arise from a mix of economic downturns, declining property and business values, and/or lack of action to address a shortfall. According to recent studies, over 50% of townships nationwide reported significant drops in tax revenues during the economic slumps caused by Covid. Many are still recovering.


A deficit that is left unaddressed can quickly compound with dire effects, such as increased public dissatisfaction, lower property values, and the inability to attract new businesses and job opportunities to the community. This is most evident in our more populated municipal neighbors, especially in the Quakertown and Doylestown areas. However as we all share in financing the public schools, it also impacts Haycock residents as school taxes are spread over a wide area, including the Haycock community.


To tackle these challenges, a transparent and community-focused non-political approach that prioritizes strategic planning is the only real solution.


Strategies for Deficit Recovery


To begin recovering from a township deficit, conducting a detailed financial audit is crucial.

I have outlined the need for a proper non-political fair and unbiased audit on this website - as a good beginning in getting a good understanding of our financial situation.


Elsewhere on this site, I have outlined my proposal to create a FINANCIAL ADVISORY BOARD made up of qualified and experienced township residents working as volunteers to address issues such as our current deficit. This would be a great way to start their work.


By doing so and by initiating community workshops to openly discuss budget issues would foster collective involvement. In these workshops, residents can share their thoughts, leading to innovative solutions and enhancing a sense of ownership among community members.


Forming community partnerships including both residents and businesses owners, can help to prioritize our desired level of services, and yield new solutions. For instance, a local municipality where I was township manager for many years, was determining the level of police services the residents desired. During several public meetings we presented FACTS about how much each new patrol officer would cost each year, which was at that time nearly $100,000.00 per year, after considering salary and benefits, medical insurances, pension costs, and items such as items such as a new patrol car every few years. It turned out to be about a 2 mill tax increase for every new officer added to the force.


When we next discussed calls for increased snow removal, we discussed a new $150K truck, additional driver costs, and the total annual costs for each unit. In the end, we explained that the township could provide almost any service that the residents wanted, and were willing to pay for in real dollars and cents.


By addressing the issues open and honestly, the residents clearly understood the fiscal impacts to them, the emotions were reduced, and the decision making process became more businesslike by allowing the residents a respected voice in the process.


Enhancing Revenue Streams

In addition to understanding all elements of the township budget, including the impacts of delaying true needs, or worse, increasing public services without first costing them out, a township recovering from a deficit should recognize that the debit probably did not arise in a single year - and probably will not be fully resolved in a single year.


To ensure long-term stability, township officials must think long term. They should reduce expenses when it is prudent to do so. They must try to diversify their revenue sources.


For example:


Implementing Fees: Efficiently managing underused public services, like community centers over time can generate new revenuers that contribute directly to the township budgets. Townships that introduced this strategy along with a well thought out marketing plan often saw a measurable increase in their revenues. This could help both the township and Community Center budgets.

Be aggressive in obtaining grants and finding new sources of revenues.

By exploring these strategies, townships can secure more robust financial futures and decrease reliance on any single income source.


As many voters may know, and as explained elsewhere on this website, I am the Executive Director of a large non profit Public Water Authority a position I have held for over 16 years. In many ways we operate similarly to Haycock Township, including financing, transparency, and respectful reporting to the public.


One way that we have maintained one of the lowest water rates around is by pursuing many grants, which at this time have totaled more that 30 Million Dollars thanks to the the team of employees I have led. There is no reason that Haycock could not also pursue the many grants available at the state and federal levels.


If you elect me as a Township Supervisor, I will be an advocate for budgetary transparency and understanding, long term financial planning, use of our home grown talent, public work sessions, and by seeking out qualified individuals for positions on the Financial Advisory Board, (if created), and on all boards and committees.


 
 
 

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