Andover's budget talks nearing an end

ANDOVER — At a May 8 committee meeting, Andover municipal auditor Ray Sarinelli proposed an amendment to the township's 2012 budget that amounts to a $54 tax increase per average household assessed at $247,000. The amendment was passed 3-2 and the final budget will be up for adoption at the committee's June 11 meeting. Sarinelli began his presentation by outlining the current state of the proposed $7.5 million budget. He gave credit to the township committee for making nearly $170,000 in large item cuts and went on to suggest an appropriation of $50,000 be taken out of a surplus fund and added to a capital improvement fund for road repairs. He also recommended not using $150,000 out of a surplus fund that was originally proposed to keep the budget flat. Past committee meetings have focused on the goal of attaining a zero-increase budget. However, Sarinelli said that even if that were possible, a $15 increase would occur due to decreased revenue in the township. The loss of town ratables is a consistent factor in the increase of taxes. “Revenue sources have declined over the past four years and expenses have increased,” said Sarinelli. Sarinelli also said that it is potentially dangerous for the township to constantly decrease their surplus fund balance, as Andover has done in the past, to keep taxes low. “Standard & Poors recommends a municipality fund balance to be 5 percent to 10 percent of the total balance,” said Sarinelli. He said that with his suggestions in place, the township's budget would reflect that recommendation. To keep taxes as low as possible, it was agreed upon by a 3 to 2 vote to take 100,000 out of the surplus fund. “It's better than using $150,000," said Committee Member and Budget Chairman Tom Walsh, who voted for the amendment. "In bad times you use it, in good times you don’t need it.” Mayor Mike Lensak considered everything that was presented before him before voting "yes" for the increase. "I'm here for the future," he said. "I want to raise my daughter here. There is no other way to get ratables at this time.” Committee members Bob Smith and Gail Poebus were adamantly opposed to any increases and voted against last night’s amendment. “People cannot pay taxes today, 15 percent of this town," said Smith. "It’s a desperate situation. And when you add in the schools and the counties, I am against it." Although Sarinelli suggested that no surplus money be used, he was satisfied with the meeting's outcome. “I think it puts you in a better position for the future,” said Sarinelli. The budget is expected to be adopted at the June 11 committee meeting.