Lower Saucon slashes property taxes in $10.8M budget for 2024

LOWER SAUCON TWP., Pa. — Lower Saucon Township Council on Wednesday approved a cut to real estate taxes as part of its updated $10.8 million spending plan.

At its Dec. 6 meeting, there was a call from Council President Jason Banonis for a 0.75 of a mill reduction to the real estate tax — that’s 4.39 to 3.64 mills — and for the fire services tax to remain at 0.75 of a mill.

Council ultimately voted 4-1 regarding the amended proposed budget along with its initial amendment, with Councilwoman Priscilla deLeon opposing both.

“Just for the record, the new council taking place on Jan. 2 will be reopening up this budget,” deLeon said.

'Somewhat well off'

The 2024 budget currently is made up of 15.4% real estate taxes, compared with 19% in 2023, with that tax expected to bring in about $1.67 million versus last year’s $1.98 million.

The budget also lists $9.3 million in reserve funding.

Council President Jason Banonis said he felt that “it’s improper for a municipality to hoard cash,” as Lower Saucon is “somewhat well off” and could face litigation as a result.

He said the host agreement with Bethlehem Landfill is an alternate funding source that provides the township some options when considering tax cuts.

The budget currently shows a projected $2.3 million in landfill host money — a $100,000 bump from 2023.

“We have certainly brought in a lot of money through that host agreement for the long term," Banonis said. "I think I calculated that number to be around $72 million over the projected lifespan of the landfill

“So I think it’s important for us as a council to be responsible with the money that we have and recognize the good fortune that we have, because of sound decision making by this council to have financial viability for maintaining township operations in the future.”

Township solicitor B. Lincoln Treadwell Jr. consulted with Finance Director Cathy Gorman and concluded that more than the originally proposed $1.5 million would have to come out of reserve funding to balance the budget.

Gorman said that since the township has more than $9 million in reserves and council is discussing taking more out of that, the panel also would have to consider its capital project pursuits for the new year.

The new budget shows that $1.84 million is required from the fund balance and $1.89 million from other sources to balance the $5.08 million capital fund.

Treadwell said that to not have to readvertise the proposed budget, council would need to avoid any increase of more than 25%, or $375,000, coming out of reserves.

Revenue decrease, transfer increase

Township Manager Mark Hudson confirmed that a 0.75 of a mill reduction in real estate tax would decrease that revenue coming in while also increasing transfers from fund balance.

“That’s right,” Banonis said.

“We have millions of dollars in reserves, of taxpayer dollars in reserves, that we’re sitting on,” Councilman Thomas Carocci said.

“I know a lot of people are dealing with inflation still, yet forever, it seems like,” Councilwoman Sandra Yerger said. “It seems like it might help them out a little bit.”

The new budget lists major expenditures as police (33.1%), public works (17.3%), administration (4.9%), fire and EMS (3.9%), insurances (2.9%) as well as parks and library (2.9%).

Primary revenue sources are shown as real estate taxes (15.4%); earned income, local services and real estate transfer taxes (33.5%); and landfill host fees (21.2%).

Victoria Opthof-Cordaro, incoming council member, later during public comment said she found the movement on the budget that night was in violation of a recent ruling on the Sunshine Law.