Cheverly Adopts Budget for FY2013
In their June 7th town meeting the Cheverly Town Council adopted the Budget for FY2013. The budget as unanimously passed includes a tax rate increase from .48 to .58 for all property owners and an increase from .48 to .98 for multi-family units.
The Council did not take the action of raising tax rates lightly. ~However, the recent round of property assessments placed extreme financial pressure on the town. Projected revenues for FY13 dropped by over $800,000, primarily driven by a reduction of $671,000 in property taxes.
Given that property assessments are locked in for 3 years, this becomes a 2.4M problem from FY13 through FY15.
The Council reviewed cost cutting measures to address revenue issues. As part of the budget the Town Council froze two staff positions, froze staff salaries and implemented other smaller cuts. Additionally, the Town Council did not include any significant infrastructure projects, except for an allocation of $170,000 for a $285,000 Trash Truck which we plan to purchase in FY14.
~The Council did not recommend any further cost cutting measures because they did not want to impact the quality of Public Works and Public Safety services. ~Residents articulated that the quality of Cheverly services is very important to them and that people chose to reside in Cheverly because of these services.
The Council believes that these actions are required to ensure that Cheverly’s fiscal future remains on sound footing. Even with the actions described above, the FY13 budget contains a $160,000 in year deficit. Fortunately, we have a strong fund balance to draw from to cover this deficit.