Wednesday, October 28, 2009

Increased Reserves Provide Future Service Stability

Although spending has increased in the General Fund, we have been able to substantially build the township's cash reserves, from $675,000 to over $7.0 million. Some of this money is the result of estate tax receipts received by the township of $4.4 million during my term as trustee. But it is interesting to note that in the five years prior to my term, the Township had received $4.2 million in estate tax receipts - and the cash reserves were 1/6 of that. It is not so much that we received substantial estate taxes, but that we didn't spend them.

The cash reserves that we have built up are important because they will help insure quality services for the next several years as our community and region works its way through the bad economy, including a decline of property tax revenue of about $500,000 for the township due to a drop in property values. We can continue to provide quality services without going to the taxpayers for more money because we have built up these reserves. If we had not, if we have continued the prior practices of spending most of what the township had - we would be in the unfortunate position of having to ask for more taxes or reducing services. But because we have been diligent and conscious of our spending, we are ready - and I am committed - to making it through the next four years without raising taxes.

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