MANCHESTER – Mayor Robert Arace outlined his first municipal spending plan during the latest Township Council meeting noting that it had its share of challenges.
The mayor said from an inflationary standpoint, the township was faced with several challenges including healthcare with a 22.4% increase and gasoline with a 20% increase.
“Prices are very much on the rise and not only do we experience that on a personal level, we experience on a municipal level,” the mayor said. “We are looking at a series of state mandated increases that we have to account for.”
He explained the budget includes the minimum allowable tax increase to the taxpayers. “Initially, when we were developing the budget for 2023 and assessing the additional revenue needed to keep critical services in the township running, we faced a 7-cent tax increase, which would have equaled a $150 increase per door in the community.”
The mayor said he knew such an increase would not be acceptable to residents and thus, “we knew that with this economic climate in no way can we do that to those facing these price increases. We looked for ways to lower the necessary increase by spending a greater amount out of surplus than initially planned and was able to project additional revenues from our EMS service.”
“This enabled us to reduce our tax increase to 3.8 cents, equaling $83 per door per year, 44.6% lower than the initially proposed tax increase,” the mayor added.
Mayor Arace explained that in 2022, “the previous administration used our American Rescue Plan (ARP) money, which was a grant provided by the Federal Government for Covid relief, as a supplement to our township’s revenues, and they used it to cover township salaries.”
“The issue with this is that they used the money to artificially deflate the tax increase that was necessary to sustain the township, and they did this during an election year. It is highly recommended that the ARP money be used for one-time expenses, such as police vehicles or fire apparatus which the township desperately needs,” the mayor added.
The mayor had criticized the prior administration of Mayor Robert Hudak for using $1,500,000 in grant money for salaries, knowing that those salaries would be required to be funded in the following year’s budget.
He noted the $1,500,000 gap required a search for ways to lessen the burden on township taxpayers, “especially in this poor economic climate.”
“The current 2023 budget level is $44,679,000 and 47% of that are operating expenses, statutory expenses, health insurance, liability and debt service. I feel it was a tremendous effort by the chief financial officer (CFO) and the administration,” Mayor Arace added.
“When we are projecting what revenues should be per category, typically Diane (Lapp) the CFO would recommend a conservative number in layman’s terms. If we said we were going to get get$1,500 we’d say no we’re going to get $1,000 and so at the end of the year that is what is budgeted and that $500 would go into surplus,” he said.
“Then we can leverage surplus to actually apply down to a potential tax increase if needed which is what we were able to do this year,” he said. “We are looking to replace the surplus spent.”
Resident Karen Perry said that in mayor’s column in The Manchester Times, which discussed the budget and its preparation, “five times you said the previous council board was irresponsible.”
“The administration,” Arace responded to her.
“Does that mean Mr. (Councilman James) Vaccaro, Mr. (Councilman Craig) Wallis, Ms. (Councilwoman Michele) Zolezi and Mrs. Lapp were irresponsible? Aren’t they part of the administration?” Perry asked.
Mayor Arace replied, “they ultimately advise and consent but it is the mayor’s budget.”
“Your words are very, very contentious accusing the previous administration of not doing their due diligence,” she said, adding that she thought the budget should be tabled for additional review.
Resident Andrew Passman said, “most of us voted for a new mayor because we didn’t like what was going on, so thank you Mr. Mayor.”
Councilwoman Zolezi cast the lone vote against adopting the spending plan. “I lack confidence that this budget as presented, is sustainable. I think it could be potentially setting us up for future increases. I don’t necessarily believe complete proper due diligence was given to operational costs and my concern is we are overestimating revenue. I cannot support the current budget so I will be voting no.”
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