Friday, November 18, 2005
The increase would mean paying $5 more a year for the owner of an $80,000 home.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
MERCER, Pa. -- The bad news is that Mercer County residents will pay more taxes under the proposed 2006 budget. The good news -- it's the smallest tax increase in five years.
County commissioners are divided over the preliminary budget introduced Thursday that would raise taxes by one-fourth mill or about $5 per year for the owner of an $80,000 home. The increase would bring in $256,500 and would be designated to keep the bond sinking fund at its required level. Commissioners Brian Beader and Olivia Lazor approved the preliminary budget, while Commissioner Michele Brooks voted against it, saying an increase in expected revenues makes it possible for the county to get through 2006 with frugal spending and no tax increase.
The total budget is $63.7 million. However most of that is state and federal funds that pass through the county. The county operating portion, or general fund, amounts to $24.6 million, a 4.32-percent increase in expenses.
Revenues, however are expected to rise by 4.60 percent, leaving an expected $105,911 balance at the end of 2006. Because of the improved revenue picture, for the first time in five years, taxpayers will pay no additional taxes for the general fund. Millage has risen almost every year since 1996 because of increasing operating costs in the general fund.
Recent millage increases were: 2005 -- 2 mills; 2004 -- 1.5 mills; 2003 -- 2.75 mills; 2002 -- 36 percent (the tax ratio was changed in 2002, making a millage comparison difficult); 2001 -- 1.5 mills. In 2000, there was a one-fourth mill decrease in taxes.
Capital projects
Commissioners said they will not use the $1.7 million they recently received from refinancing an outstanding bond issue to avoid the tax increase in the bond sinking fund because it is needed for capital improvements. Lazor said that some $600,000 of the windfall will be used to finish the new jail, and the remainder will be used toward capital projects the county could not otherwise afford.
On the list of possible projects are renovation of the old jail, renovation of archive storage, heating and air conditioning improvements and other needed maintenance in the county's 14 buildings, and upgrading of parking lots.
Commissioners emphasized that figures presented Thursday are not final. They could change by Dec. 8 when the final budget will be adopted.
County Fiscal Director John Logan said one stress on the budget is that the state has reduced Children and Youth Services funding by $800,000 for 2006. But the reductions are mandated services, meaning that the county may have to come up with the funds if no other source is found.
There are also some unexpected savings and revenues in the 2006 budget. For one, the county will save about $200,000 in lower health insurance premium costs because it will be requiring employees to pay higher co-pays in 2006.
Also, increased commercial and residential construction in the county is expected to bring in $900,000 in additional property tax revenues.