Cranberry OKs budget of nearly $22M for 2021
Cranberry Township supervisors on Thursday approved a nearly $22 million general fund budget for 2021, despite facing a roughly $1 million drop in revenue attributable to the pandemic.
The budget, which projects $21.79 million in general fund expenditures, is based on an estimated $20.82 million in revenue.
Despite the apparent deficit, however, Cranberry's true expenses will likely be lower than planned.
The budget document indicates there is a current $3 million carryover from unspent but budgeted funds in 2020, and the 2021 budgeted expenditures includes funding for vacant township positions. The township, however, expects a hiring freeze to remain for full-time positions.
“Township management will not take any recommendations to the board to fill those positions until the 2021 revenue demonstrates the $1 (million) deficit is being replaced,” the document states.
Cranberry's revenue is projected to be lower in 2020 primarily due to a reduction in Act 511 taxes, which include earned income and mercantile taxes and make up nearly 57% of the township's revenue.
“The budget continues all the current programs,” township manager Jerry Andree said. “It does reflect about a $1 million reduction in revenue. We were able to cover that.”
The budget document shows the township saved $182,000 in 2020 from voluntary furloughs, $217,000 from reducing seasonal hiring, $1.58 million from deferring expenses and $1.22 million from keeping some full-time positions vacant.
Additionally, most of the township's expense categories will see reductions in varying degrees next year. Recreation, for example, is projected to have a roughly 4% dip in expenditures, while a $1 million “miscellaneous” category from 2020 disappears in 2021's budget.
Cranberry's projected expenses for its general government and public safety categories will see modest increases, with the township expecting to pay $5.2 million for the former — a roughly 5.5% increase from 2020 — and $7.1 million for the latter — about a 4% jump from this year.
The township's overall expenditure next year will also include $39 million from “other” funds, including capital improvements, traffic impact programs and “enterprise” funds such as water and sewage.
Cranberry also expects another source of revenue for 2022: Being able to collect property tax from the site upon which the Westinghouse Electric Co. campus sits.
While the property was considered not taxable for 15 years as part of incentives for Westinghouse to move its operations to Cranberry, that “strategic development area” will expire at the end of 2021, making taxable the $13.4 million computed value of the property.
