MERCER COUNTY '05 budget proposal includes another tax increase

Taxes will go up for the third year in a row.
MERCER, Pa. -- A proposed 2005 Mercer County budget calls for a 2-mill tax increase, which will cost an average homeowner about $40 more per year.
County Fiscal Director John Logan presented the preliminary budget to commissioners when they met Thursday. Work will continue on finalizing the budget, with final adoption set for Dec. 29.
Last year, commissioners raised taxes 1.5 mills. In 2003, the increase was 2.75 mills.
Details
Logan said the main increases in the $24.7 million general fund budget for 2005 are:
UA $918,000 contribution that must be made to the county pension plan this year because investment returns again are not keeping pace with the plan.
U$320,000 needed by Emergency 911 to meet expenses because the increasing number of cell phones is cutting into income from conventional phone owners who are charged a monthly fee to support E911.
U$250,000 in pending economic development projects, primarily one in which 1,000 acres in the county would be set aside for development projects.
U$510,000 in various increases including health care premiums, employee costs and others.
In addition, the county is now negotiating 2005 contracts with four of its labor unions, and money will have to be found in the budget if any wage increases are granted.
The 2-mill increase would bring the county tax rate to a total 20.75 mills. One mill brings in $1 million, according to Logan, and the increase would bring 1.75 mills to the general fund and 0.25 mills into a capital reserve fund. He said the increase would cost the owner of an $80,000 home $40 more per year.
Logan said that $800,000 has already been cut from department requests. He said efforts will continue to make more reductions before final adoption.