SHARPSVILLE, PA. Budget plan has tax raise

One mill of the property-tax increase is for a firetruck.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARPSVILLE, Pa. -- The average residential borough property's tax bill will rise by $76 annually under terms of a general-fund budget proposed for next year.
Borough council voted to accept the tax plan at a special meeting Monday after two hours of debate over how much of an increase will be needed to make up an expected $253,981 shortfall in revenue for 2003.
The compromise shows a 4-mill property tax increase, with 3 of those mills going into the general fund for operating expenses and 1 mill set aside for a firetruck the borough is buying.
That firetruck mill will stay in place for 10 years to pay off that debt, which isn't part of the general fund shortfall for 2003.
The 3 mills for the general fund will generate $84,000, and council will take about $127,000 from its capital improvement account to help balance the general fund.
Delayed buying
The rest of the shortfall, about $43,000, will be covered by delaying the purchase of various pieces of municipal equipment, including a police cruiser, by one year.
That delay will reduce the budget total from $1,210,908 to about $1,168,000.
Council had also been looking at raising municipal water fees by 10 percent but said that will no longer be necessary.
The borough solicitor will draft a budget ordinance carrying the new tax figures for introduction at the Dec. 11 council meeting.
The budget shows a $60,000 increase in spending next year.
The alternative
"We're going to have to raise taxes. Absolutely no one in town wants us to cut services," said Councilman Thomas Lally, explaining that the only way to cut expenditures significantly would be to cut personnel.
The alternative is to raise taxes and tap unused funds in the capital improvement account, he said, proposing a 5-mill tax increase (which included 1 mill for the firetruck) and tapping the capital improvement account for $143,000.
Councilman Gary Grandy at first refused to consider any tax increase, arguing instead for several scenarios that would avoid an increase, including taking the entire shortfall out of the capital improvement account.
Lally and others argued against that plan, saying that would nearly wipe out the capital improvement balance.
Grandy countered with a 3-mill increase, again with 1 mill going for the firetruck, but couldn't get support for that plan either.
Finally, he offered the 4-mill plan, and all six council members present accepted the compromise.
Councilman Alex Kovach was absent.
The plan would raise municipal real-estate taxes to 18.03 mills.