Lower Frederick Township. Photo by James Short.
Township supervisors worry that Lower Frederick could be bankrupt by 2028.
Lower Frederick Township Supervisors are poised to adopt a $2.7 million budget next month with a $228,181 deficit and an increase to the township sewer rates.
According to a budget presentation earlier this month, revenues are projected to be $2.495 million.
However, with the general fund cash balance at the end of 2025 projected to be $1.9 million, Lower Frederick is on track to be bankrupt by the end of 2028.
Sewer fund revenue, per the township, is projected at $1.2 million, with expenses over that at $1.3 million, leaving a $101,655 deficit.
The board is proposing a sewer rate increase from $200 a quarter to $220 a quarter, per the township.
Lower Frederick aims to exhaust its American Rescue Plan Act funds next year with $115,933 spent over two projects.
"We're still going to be completely broke by the end of 2028 with these trends." said Board Chair Marla Hexter.
Supervisor Terry Bird said the township will not go bankrupt for a building, even though it has been running a deficit.
“We do have general funds. In 10 years, 12 years, if we don't do anything, completely agree, but let's not play this 'in five years, there's doom,'" he said.
