HERMITAGE Budget includes no new taxes

Income-tax revenue is expected to increase by $250,000 next year.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
HERMITAGE, Pa. -- It's been 11 years since residents of Hermitage faced an increase in their municipal taxes, and city commissioners plan to make it 12 in a row.
Commissioners introduced a $9,016,312 budget for 2003 Tuesday that shows a $470,000 spending increase without raising taxes.
A big chunk of that increase will be covered by an anticipated $250,000 in additional earned income taxes next year. Per-capita and other taxes are expected to generate an additional $200,000 next year.
The city has an earned income tax of 2.25 percent, but 0.5 percent of that is handed over to the Hermitage School District. The city also has a 5-mill property tax.
City Manager Gary Hinkson said there is increased construction in Hermitage, but the budget shows the property-tax revenue remaining steady at $1,118,000 for next year.
There may be no tax increases for 2003, but city residents will see their sewer fees rise next year.
Residential users are paying a flat fee of $66 per quarter now, and that will rise to $84 as of Jan. 1 and go to $90 on Jan. 1, 2004, and $95 on Jan. 1, 2005.
Commissioners enacted those increases in September, saying the money is needed to cover increased operating costs and to help finance $13 million worth of sewer system improvements.
That sewer fee doesn't go into the general fund. It is used to finance a separate sewer budget that will reach $3,280,905 in 2003, an increase of $500,000.
Raises for employees
Hinkson said the general-fund budget provides a 3.75 percent pay increase for police officers Jan. 1 and a 3.25 percent increase for nonuniformed employees beginning April 1.
Raises for management-level employees haven't been set yet by commissioners, he said.
Hinkson said 22 percent of the budget is earmarked for capital improvement projects, with about $500,000 for Gateway Commerce Park on Pa. Route 18. The city is a partner in the development of that planned technical park with KAKE Development Co. and is helping to finance infrastructure improvements to the site.
Other capital improvement items include new street department equipment and storm sewer improvements.
City commissioners introduced the new spending plan without comment, setting a public hearing and final vote on the budget ordinance for their Dec. 18 meeting.