Warminster Projects Budget Surplus of More Than $1.4 Million for 2011

Warminster Manager Bob Tate projects that the township's 2011 budget will end up with an approximately $1.4 million surplus due to a boost from the state pension relief fund and a larger-than-predicted amount of fees, permits and taxes collected from local businesses.

"The development of places like the Costco, CVS stores and Station condos brought in about $300,000 more than what was originally projected," said Tate. 

Tate attributed the increase of land and storefront development in Warminster to the township's updating of its subdivision and land development ordinances (SALDO) and stormwater ordinances.

"Any new business looking to develop land or renovate existing buildings look at the township's SALDO, stormwater and zoning requirements," said Tate. "We made it less difficult for a developer to build and have a business in the township."

Another major factor for the surplus was a larger allocation of cash from the state pension relief fund. The township expected to get approximately $400,000 from the fund, but received $884,236.05. 

According to a release by Jack Wagner, Pennsylvania's auditor general, the increase in tax collections is due to a more aggressive approach by the Pennsylvania Department of Revenue in collecting a 2 percent tax on out-of-state insurance companies that sell casualty insurance policies to Pa. residents.

Wagner said the state will disburse an additional $132,615,954 in pension aid this year, an increase of 61 percent over a year ago. In total, the Department of Auditor General will disburse $350,526,203 in state aid this year, compared with $217,910,249 in 2010.

This is an adjustment to how the casualty insurance tax had been collected in the past, and the higher number reflects the payment of more than 18-months of payments due to the states. Consequently, municipalities should not expect such a high payment in the future.

“This one-time funding increase is a great opportunity for municipalities to better ensure the long-term financial stability of their pension funds,” Wagner said. “However, I strongly caution against using this additional one-time increase as justification for providing increased pension benefits to plan members or for planning future budgets.”

Money from this allocation can only be used to strengthen the township’s pension plans covering police, fire and non-uniformed personnel. Tate plans to save the rest of the surplus and use as little of it as possible for 2012’s operating costs.

The bright report is a stark contrast from Warminster’s budget woes in 2010, where a $700,000 shortfall forced the board of supervisors to .