Hits to sales at businesses like Walmart and Sam's Club in Butler Township have led to a projection of $125,000 to $200,000 in lost tax revenue for the township.

Butler Township officials are bracing for reductions in revenue from business privilege and local service taxes next year.

Business closings and reductions in sales due to the COVID-19 pandemic are projected to reduce the township's revenue from retail business privilege taxes by $95,000 to $100,000 and revenue from local service taxes by $60,000, Cheryl McNeill, assistant township manager, said during a budget hearing Thursday.

The projected reduction in retail and wholesale business privilege taxes combined is $125,000 to $200,000, McNeill said.

She said Walmart and Sam's Club reported 28% reductions in sales and those stores didn't close during the pandemic.

Businesses that closed after being deemed nonessential experienced an average of 40% losses in sales, McNeill said.

Manager Tom Knights said it is not known whether online sales, in which a purchase was made online and the item was picked up at a local store, are subject to business privilege taxes.

“We projected higher because we don't know,” Knights said.

The total 2021 budget is projected to be $7,552,085, which is $473,378 less than this year, he said, adding that officials have committed to not raising the 11.25-mill real estate tax rate or the $5 per capita tax.

The road department requested $364,772 for the 2021 street resurfacing project. That amount includes $82,794 carried over from this year, said Dave Meeder, public works director.Other major budget requests $74,800 for a 2021 Ram 5500 dump truck with a snow plow and salt spreader; a 2021 New Holland subcompact tractor for $11,000; $130,000 for storm sewer materials; $52,750 for road repair materials; $38,000 for buildings and grounds materials; $40,000 for equipment maintenance; and $25,000 for street signs and line painting.If enough money is available, Meeder said he would like to purchase a Bobcat mini excavator for $62,569 and a concrete saw for $2,249.The total request for road salt is $252,705, but that amount would be spent if the township used more salt than it committed to buy from the state COSTARS joint purchasing program, he said.Instead, he estimated that 2,400 tons of salt costing $108,302 would be needed.The police department's total budget request is $2.72 million, a 13.6% increase over this year's $2.02 million budget.Police Chief John Hays' requests include $79,721 for two new Ford Interceptor SUVs; $60,000 for traffic signals; $33,000 for maintenance and repair of vehicle speed detection units and other technology; $16,000 for general expenses; $14,000 for minor equipment; $12,000 for uniforms; $11,000 for vehicle maintenance; and nearly $10,000 for radio equipment maintenance.Code enforcement officer Jesse Hines' request include $29,917 for a 2021 Ford Explorer for his office. He said the current vehicle is a 10-year-old car with 130,000 miles that was handed down from the police department.