The Vernon Township Council on March 23 lowered its cap bank to 2.5 percent.
The first draft ordinance was set at 3.5 percent, but Councilman Andrew Pitsker asked that it be lowered to 2 percent.
Chief financial officer Donelle Bright said the township can use the banked cap for an emergency appropriation to cover an unexpected expense, such as a repair to the township’s new fire truck.
Any banked cap will expire in three years.
“That’s where the cap bank comes into play,” Bright said. It will prevent the township from being caught between statutory regulations and the need to continue serving residents in emergencies, she said.
Mayor Howard Burrell favored leaving the cap bank at 3.5 percent but suggested a compromise of 2.5 percent.
“I don’t want to be in a position where something comes up and I have to cut a policeman or a member of the (Department of Public Works),” he said. “You look at our budget, and there are things we can’t cut.”
The council will hold a public hearing on the amended ordinance at its next meeting on April 12.
The council also introduced the 2021 budget, which calls for appropriations of $27.8 million and a tax levy of $19 million.