Tax millage is left unchanged in '07 spending plan

Commissioners gave 11,400 to New Castle for costs associated with the recent house explosion.
By LAURE CIOFFI
VINDICATOR PENNSYLVANIA BUREAU
NEW CASTLE, Pa. -- Lawrence County residents will see no tax increase or tax cut come 2007.
County commissioners voted 2-1 to pass a spending plan that keeps millage at 5.313 for the next year.
Commissioner Ed Fosnaught voted against the budget, reiterating his stance that the property tax rate be reduced. Commissioners started working on the budget in September and introduced a first draft of it on Dec. 7, but Fosnaught did not make his tax-cut proposal until Dec. 19.
Commissioners Dan Vogler and Steve Craig said they felt comfortable with the proposed budget, which underwent some minor tweaking since it was first introduced.
Fosnaught said they learned Thursday that there would be 1.4 million left from 2006 which commissioners had not anticipated when crafting this budget. This is in addition to the 1.2 million the county has from the sale of the county nursing home and interest from some bond refinancing. Fosnaught wanted to give residents a 5 percent tax cut from the nursing home and bond profits. This would amount to about a 15 per year tax cut for a resident living in a home assessed at 50,000.
But Craig said the money from the nursing home and bonds is part of the county's capital reserve and should be used for capital projects such as building improvements.
He added that the carry-over cash from 2006 will be needed to get through the first three months of the year until taxes are paid.
Tax anticipation loan
The county also took out a 3.2 million tax anticipation loan from Mellon Financial to help cover those costs.
Commissioner Dan Vogler agreed with Craig noting the carry-over money will essentially be a rainy-day fund for any capital-improvement needs.
"We want to meet the anticipate and unanticipated capital needs of this organization," he said.
Amy Lamb of New Castle, a frequent meeting visitor, said she did not agree with Fosnaught's proposed tax cut.
"Fifteen dollars won't even fill up my gas tank. To give a tax cut [that amounts to] 15 is ridiculous," she said.
The 2007 budget includes a 3.5 percent pay increase to union, nonunion and management employees and a 2.3 percent increase for elected officials.
The county is also making a 540,000 contribution to the county retirement fund. This is up from a 450,000 contribution in 2006.
In other business, commissioners approved the transfer of 11,400 to the city of New Castle to help with costs associated with the Nov. 27 explosion of a house on Franklin Avenue.
The money will assist the city with police and fire overtime costs and demolition costs for uninsured buildings, commissioners said.
cioffi@vindy.com