Lower Merion Decides Tax Windfall Will Prevent 2013 Rate Hike

The Lower Merion Board of Commissioners elected Wednesday night to allocate a recent $6.9 million business-tax windfall , including using as much as necessary to prevent a property-tax increase in 2013.

The money came in after court settlements in the fall, but because state laws restrict the amount of surplus in a municipality's general fund, it all needed to be allocated to specific purposes, commissioners had been told.

The 12 members present Wednesday night voted unanimously for preventing a 2013 tax increase (the 2012 budget was tax-neutral also) and for further funding the township's capital improvement plan.

Asked how much the zero-tax-hike initiative would cost, Township Manager Doug Cleland would only estimate "millions of dollars" without knowing more now about 2013's financial picture. Budget approval typically happens in December.

Said Vice President Paul McElhaney, a Democrat, "This does not give this board the right to rest on its laurels. We have a long year ahead of us, a lot of work ahead of us."

Republican Phil Rosenzweig called the 2013 tax plan "exactly what this board should be doing" with the surplus.

Commissioners were divided on putting $1 million in the equipment fund for vehicle and emergency radio purchases (nine Democrats for, three Republicans against) and even more so on setting aside $200,000 for future health insurance costs (7-5, with Democrats Dan Bernheim and Cheryl Gelber voting no).

Members on both sides of the vote called for more frequent reporting from staff on equipment purchases, though Gelber noted the board shouldn't "micro-manage" by requiring its approval for all expenses.

Republican Lew Gould called again for the township to use the tax windfall for an immediate refund to taxpayers: "I would venture to say an overwhelming majority of our taxpayers would say, 'We would like to take care of our own money ourselves.'"

Board president Liz Rogan, a Democrat, and Jenny Brown, a Republican, were absent.