At a recent meeting, Warminster Township supervisors addressed a $22,000 negative general fund balance. Often, municipalities struggle financially at the start of the year before tax revenue arrives in March. The solution to the problem is a tax anticipation loan, common practice for municipalities. Warminster borrowed $500,000 in a tax anticipation loan this year. Although the budget balance for the coming year is strong, the cash balance was alarming to supervisors. With tax revenues down, Warminster saw a 60 percent decrease in real estate transfer taxes from 2008 to 2009 when the revenue fell from $1.1 million to $413,000, township administration is working hard to tighten actual expenditures.
Warminster Township addresses negative general fund balance
February 23, 2010 By Leave a Comment