SHARPSVILLE Budget reduces size of tax increase

The proposal would raise residential tax bills about $57 a year.
SHARPSVILLE, Pa. -- Borough council has revised the 2004 budget, reducing the size of a tax increase.
Borough Manager Michael Wilson had given council his version of the general-fund and water-plant budgets Nov. 12, calling for a 4.5-mill property tax increase and a 3 percent increase in municipal water rates.
Wilson's version showed general-fund expenditures of $1,148,179 and didn't require taking any money from the borough's capital reserve account.
Sharpsville has hit its reserve funds hard in recent years in an effort to avoid tax increases. It has taken $260,000 from that account over the past two years to balance the 2002 and 2003 general fund budgets. Despite that, council still had to raise property taxes 4 mills this year.
No one on council was happy with Wilson's proposal, and after several budget meetings, council revised the 2004 spending plan, reducing the general fund to $1,104,000 and cutting the tax increase to 3 mills, Wilson said.
However, it also takes $21,000 from the capital reserve account by transferring the purchase of a police car from the police portion of the general fund budget to the capital reserve fund, he said.
Water increase
The borough will still face a 3 percent water increase to finance the water plant's $639,000 proposed budget, he said.
One mill of tax costs the average residential taxpayer about $19 a year and generates $28,000.
The average residential water rate is $23 a month.
Wilson said council is expected to take a final vote on the general fund and water budgets Dec. 10.