Andover facing budget shortfall

Township council looking for revenue-raising opportunities to close gap By Rose Sgarlato ANDOVER — Council members held a budget workshop at Tuesday’s committee meeting to try and reconcile this year’s budget and come to an agreement. Presently, the unapproved budget is $100,000 over last year. Although other topics were discussed, all roads led back to the budget discussion. “A tax increase is unacceptable," said Committee Member Bob Smith. "We must target for a zero or flat budget." Smith said to raise taxes one penny would not be the right thing to do. "There are too many people not working and looking for jobs." But with the tax collection rate down and unavoidable costs increasing, the town may be in a Catch 22. “If we have declining revenue, we have to raise taxes,” said Committee Member Phil Boyce. On the positive side, the township is avoiding using bonds to pay for future costs and has tentatively projected a capital improvement fund of $50,000, which it deems a necessary step that will put them ahead of the game in the future. Increasing property taxes is a concern that both council members and the public share. “Our taxes are affecting our real estate value making Andover Township not a desirable place to live,” said Smith. John Garafalo of Newton said, “To raise taxes is a defeatist attitude. Get rid of the open-space tax. This is not a game, people are losing their homes, and it’s not going to get better.” Although Mayor Michael Lensak feels the pinch of the economy with his own business and would not like to see taxes increase, he is concerned about the adverse affect of leaving things as they are. “We are all in this together, but if you cut services, then valuations go down. With high taxes, you have services which make people want to live in Andover,” said Lensak. “We are between a rock and a hard place. If we cut taxes, then we have to cut services.” Lensak went on to explain that state funding has been severely cut over the past several years as a direct result of the energy taxes being eliminated. “1.3 million dollars in taxes has not been given to Andover Township," said Lensak. "The state is the place to blame." Looking for other revenue opportunities, the committee is hoping a reserve fund of uncollected taxes may help. But Chief Financial Officer Gail Magura, who is coordinating the budget, is not optimistic. “I don’t see how this is going to be a zero budget. With some things going up like gasoline and insurance, you cannot do anything. Bond payments are fixed. What we can control, we have kept flat,” said Magura. Other alternatives were also discussed. “We do have valuable assets like this building town hall and the barn," said Smith. "We should look at every piece of real estate that we can sell. Cutting is not the only answer." A feasibility study to be conducted by a sub-committee that will look at the possibility of selling township properties was proposed. For now, the council will continue to explore other revenue-raising measures.