Denver Struggles With Declining Revenue
0 Comments | Intelligencer Journal Lancaster New Era; Combined Saturday edition, Nov 3, 2009 | by Alice Hummer
BY ALICE HUMMER
Correspondent
Planning the 2010 budget is proving difficult for Denver Borough Council. In addition to the sluggish economy affecting areas such as new home starts and permits for remodeling, two areas of revenue are taking a big hit.
Denver expects to see about $67,000 less in earned income tax.
“Last year we found Lancaster County Tax Bureau projections a bit high and the economy slowed down, so that’s why we are projecting the decline in earned income tax,” Borough Manager Mike Hession said.
Also, the Henry Schein Company, one of the largest area firms, with 350 employees, has one-third of its property in Denver and two- thirds in East Cocalico Township.
Denver Borough, which has a $52 local services tax, last year collected $42 from each Henry Schein employee. East Cocalico, which had an occupational privilege tax, collected $10 from each Schein employee.
Beginning this year, the percentage collected from each employee will shift because East Cocalico replaced the $10 occupational privilege tax with the $52 local services tax. The anticipated shortfall from this action for Denver is about $9,000.
“It’s a balancing act to not increase taxes and yet have enough in reserves in case a big project comes up, or we have bad weather and need more salt,” Hession said. “The borough (council) is also sensitive to the needs of volunteer organizations who have requested funds.”
Those organizations include the Denver Volunteer Fire Company, which has ordered a new rescue truck to replace a vehicle that is more than 20 years old. The company saved a significant amount of money by ordering in 2009, before 2010 changes in the vehicle’s engine and emissions-control system.
Police costs are projected to increase 4.5 percent, to $497,830 for 2010. Council members discussed the fact that Denver Borough gets billed for all calls in the borough, which includes Cocalico High School.
This issue has been discussed over several years. If two students are fighting, and neither one is from Denver, the borough gets assessed for the police response. The East Cocalico Police Department serves the boroughs of Adamstown and Denver and the townships of East Cocalico and West Cocalico.
In other business, Denver Council voted:
To donate three old intersection signs and two old street signs to the Adamstown Area Library Auction, which is scheduled for Saturday, Nov
denver property management plans