Lower Southampton laid off 10 township employees last year, but the savings will only cover part of an anticipated seven-figure budget shortfall this year.
Lower Southampton is not ruling out a second round of employee layoffs later this year to fill a projected $1 million budget shortfall as a result of coronavirus business shutdowns.
Last month, supervisors approved eliminating 10 full-time township employees after the township saw its revenues plunge $171,000 in April compared to the previous year, according to Supervisors Chairman Ray Weldie.
… the township is anticipating a gap this year of $800,000 to $1.2 million in its $32.7 million budget meaning further cuts may be necessary, especially if there is a predicted second wave of COVID-19 later this year, Township Manager Joe Galdo said.
[Note: In comparison, Newtown Township Anticipates More Than $1.3 Million Budget Shortfall. It’s 2020 budgeted revenue is only $12 million! See http://sco.lt/54w3Si]
Lower Southampton has not raised property taxes for the last 13 years, mostly because it has a 1% earned income tax that is now the main source of revenue for the township. [The same is true for Newtown Township.]
In December, Galdo estimated that the EIT would bring in $4.8 million to $5.5 million this year. He also projected the township will use $200,000 to $450,000 of its roughly $3 million fund balance, or reserves, to balance the 2020 budget.
The current revenue shortfall is blamed largely on EIT losses as a result of business slowdowns, closures and stay-at-home orders, officials said.
Between 14% and 18% of Lower Southampton residents are currently unemployed, according to Galdo, which has also impacted other revenue sources such as the business privilege tax.
Some Supervisors to Give Up Salaries
In an effort to help reduce costs, Weldie announced at a May 13 supervisor meeting that he returned his monthly supervisors paycheck to the township and plans to give up his supervisor salary for the rest of the year to help the township.
Supervisors Deborah Kaplan and Ed Shannon also have agreed to forfeit their supervisor salaries, which amount to $4,125 a year each before taxes, Weldie said.
Supervisor Kim Koutsouratis said Tuesday he wanted to speak to the board before making any decisions on forfeiting his salary. This news organization was not immediately successful in reaching supervisor Sue Cummings for comment.
The Newtown Township ZHB did not reject the development of a Super Wawa on the Newtown Bypass, but it did deny variances to have 16 fuel pumps where only 12 are allowed and signs facing the Bypass. Read: “Wawa's Request for Zoning Variances Denied!”; https://sco.lt/6Eh7rM
I fully expect Provco to appeal the NT ZHB decision and also challenge our zoning regulation regarding signs facing the Bypass. If that challenge is successful, we can expect to see more signs on the Bypass!!!
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