This post was contributed by a community member. The views expressed here are the author's own.

Politics & Government

Borough Council Approves Introduction of Budget

Cap bank also established on Monday night.

The formally introduced its 2012 municipal budget Monday, with a public hearing to follow at the council’s April 23 meeting.

This year’s budget features a 7 percent tax levy cap increase, which is allowable due to exclusions to the state tax levy cap. Those exclusions include the borough’s debt service costs included in its new cap bank, which was established on Monday via an ordinance to allow the borough to exceed municipal budget appropriation limits.

“The cap is a mechanism to control property taxes,” Borough Administrator Robert Falzarano said at the Chatham Borough Council meeting on Feb. 27. “The question is how can you go over (the two percent tax levy cap) and still be under the cap. Those exclusions get dropped from the total budget increase that’s going to the tax levy.”

Find out what's happening in Chathamwith free, real-time updates from Patch.

Falzarano also explained on Feb. 27 that the borough can keep funds in the cap bank for two years and carry those funds over to the following year. Combining last year’s total banked amount of approximately $153,000 with 2012’s total of $182,000, the borough will have around $335,000 of credit banked for use in 2013.

“It’s not a bank with money in it. It’s a calculation,” Falzarano said.

Find out what's happening in Chathamwith free, real-time updates from Patch.

The budget approved Monday is as follows:

Chatham Borough 2012 Municipal Budget Appropriations Municipal Purposes $11,699,232.46 Reserve for Uncollected Taxes $1,725,706.33 Total General Appropriations $13,424,938.79 Less Anticipated Revenue other than Current Taxes $6,820,514.88 Local Tax for Municipal Purposes $7,301,326.66 Minimum Library Tax $777,048.49

The next step for the borough’s municipal budget process is the public hearing at the council’s Apr. 23 meeting. The meeting will take place at the , located at 54 Fairmount Ave, and is scheduled to begin at 7:30 p.m.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?