What’s the 422?

Trappe’s municipal budget has nearly doubled in size for 2009, but the infusion of $925,000 in state grant money has helped the borough to maintain its residential tax burden at last year’s levels.

The $2.6 million budget, formally announced by the borough on Wednesday afternoon, includes more than $1 million in spending on park projects in the borough, including the development of Rambo Park.

The open space spending spree is mostly offset by the expected grant money from the state Department of Environmental Protection and the Department of Conservation and Natural Resources. The borough received only $25,000 in grant money in 2008.

The budget also includes $302,000 for road maintenance and repair, a 74 percent increase from 2008. Most other items on the budget saw relatively minor increases or decreases from last year.

“It’s what the budget doesn’t include that has a lot of folks smiling… specifically, the 2009 budget does not include new taxes and does not raise current tax rates,” a statement issued by the borough read.

In the statement, Borough Councilman Nevin Scholl called the budget “sound and sensible” and said it compared favorably to other area budgets.

“Some municipalities in our area are proposing double-digit tax hikes and more,” Scholl said.

The borough anticipates collecting $575,000 in earned income tax. Trappe eliminated its property tax in 2006, though property owners must still pay property taxes to Montgomery County and the Perkiomen Valley School District.

The budget’s total expenditures are projected to be $2,589,000, with $2,472,000 in expected revenue. To balance the budget, Trappe is dipping into its cash reserves and withdrawing $117,000 from its General Fund.

Asked whether the borough would replenish the amount being withdrawn from the General Fund, Borough Manager Tommy Ryan said that the state and Montgomery County would reimburse the borough $158,200 for initial construction work done on Rambo Park during 2008. The borough spent $177,900 on the park last year.

“Overall, the state and county will reimburse the Borough for 88 percent of the total project cost,” Ryan said via e-mail on Thursday.

Ryan said the General Fund balance at the end of 2008 was $270,237, which doesn’t reflect the money spent on Rambo Park. Including all funds, Trappe’s total cash reserves at the end of 2008 were $1,555,009.