The good news is there will not be a Salisbury Township tax hike in 2019.

The bad news is the township capital fund balance is expected to be depleted in about five years and to be nearly $1 million in negative territory in about 10 years.

The 2018 township tax rate is to remain at 2.2 mills for 2019. Based on the average township residential assessment of $200,000, the tax bill would be $440.

And, while the township millage rate is expected to remain the same, increased water and sewer rates and refuse and recycling fees are anticipated in 2019.

The water rate is proposed to increase 30 cents, from $6.30 per 1,000 gallons to $6.60 per 1,000 gallons.

The sewer rate is proposed to increase $11 per quarter, from $66 per quarter to $77 per quarter or $44 annually.

Water and sewer rate increases are pass-along increases from Lehigh County Authority.

The refuse and recycling rate is proposed to increase by $1 per quarter, from $67 per quarter to $68 per quarter, or $4 annually.

The refuse and recycling increase is a pass-along from Republic Services, the township-contracted trash hauler.

The proposed 2019 Salisbury Township General Fund Revenue is: $7,892,742.

The proposed 2019 Salisbury Township General Fund Expenditures is: $8,048,438.

The 2019 deficit is expected to be: $155,696.

To offset the deficit, the township would have to take money from its fund balance, which is: $2,972,899.

Salisbury Township Director of Finance Paul Ziegenfus presented nearly a foot-thick 2019 budget binder to each of the five commissioners at the Oct. 11 township meeting workshop.

“We do not propose an increase in taxes,” Ziegenfus said to commissioners.

Just to make sure, board of commissioners Vice President Debra Brinton,” asked, “No tax increase?”

“Right now, there’s none,” Ziegenfus confirmed.

However, Ziegenfus warned, “The capital fund balance will zero out by 2025.”

Ziegenfus recommended, “A lot of funding needs to be from bond financing.”

“So, we’ll run out of money in six years,” Brinton said.

“We had a good operating reserve for a long time,” Salisbury Township Manager Cathy Bonaskiewich said. “It’s just not there anymore.”

“We came out of a rough time and we didn’t feel it was fair to tax the residents,” board of commissioners President Robert Martucci Jr. said.

Eastern Salisbury Township Fire Department and Western Salisbury Fire Department are expected to make funding requests at the next township meeting, 7 p.m. Oct. 25.

The township police department and public works department are expected to make funding requests at the 7 p.m. Nov. 8 township meeting.

Township officials will review the contents of the proposed budget binders, with a first reading of the budget anticipated Nov. 8, after which the budget is expected to be advertised and made available to the public on the township website and at the municipal building, 2900 S. Pike Ave.

After 30 days for public review, the 2019 budget is expected to be on the Dec. 13 township meeting agenda for a possible up or down vote by commissioners.

After the Oct. 11 meeting, Ziegenfus also discussed the Capital Plan-General Fund for the next decade, 2019-2028, a copy of which he gave to a reporter for The Press.

The 2019 Capital Plan General Fund Revenues are: $324,000, or:

Grants: $107,000

Sales of Assets: $5,000

Interest Income: $12,000

Operations: $200,000

The 2019 Capital Plan General Fund Expenditures are: $406,000, including:

Public Works: $45,000

Recreation: $137,000

Police: $40,000

Administration: $40,000

General Fund Debt payments: $184,000

The 2019 Capital Fund deficit is: $82,000

The 2019 beginning Capital Fund balance is: $1,350,000

The 2019 ending Capital Fund balance is: $1,268,000

The ending Capital Fund balance is expected to drop annually:

2020: $1,037,000

2021: $852,000

2022: $657,000

2023: $504,000

2024: $160,000

Starting in 2025, the ending Capital Fund balance is expected to be in negative territory: $130,000 in the red.

The red ink is projected to continue:

2026: $685,000 in the red

2027: $863,000 in the red

2028: $982,000 in the red