Sharon to raise wage tax, lower property taxes

The mayor said the property tax reduction gives a break to businesses and may save jobs.

STAFF REPORT

SHARON, Pa. — City council appears poised to pass a wage tax increase and a real-estate tax reduction.

Council voted 4-1 in favor of both Tuesday, with council member Frank Connelly voting no.

The issues passed first reading and must now go to a second reading before a final vote.

Connelly said he agreed with some members of the public that the proposed rise in the wage tax from 1 percent to 2.25 percent was “a little aggressive.”

Griswold Street resident Kenny King said he would see his property tax go down $500 under the reduction from 39.5 mills to 21.5 mills, but he wouldn’t see any relief because the city will collect $1,200 off his wage tax increase.

Resident Carol Swartz said she looks at the proposal as a “wonderful holiday present” to residents.

“That’s all residents are — senior citizens and retirees,” she said.

Mayor Bob Lucas had originally proposed a 4-mill, or 10 percent property tax increase, to balance the 2009 city budget, which is a little more than $8 million including a $449,000 carryover from last year.

Last week, he said he used unappropriated money in the capital improvements fund to correct a $130,000 shortfall and balanced the budget without that increase.

Lucas said he likes the property tax reduction because it gives a break to businesses in troubled economic times and so it might save jobs.

“It’s a move that needed to be done,” said council member Darin Flower. “The businesses of Sharon will benefit. Senior citizens will benefit.”

Council has set another meeting for 4:30 p.m. Jan. 5 and will likely vote on the property tax reduction and wage tax increase then.

Council will also vote on a four-year contract with city firefighters. Council announced a deal on that pact Tuesday, and it passed first reading 4-1. Connelly voted no because, he said, he hasn’t had a chance to read the contract.

The pact includes raises of 3.75 percent in the second and fourth years.

It also includes health insurance co-pays of $32.50 out of each paycheck for the first year, $40 from each pay in the second and third years, and 10 percent of the annual premium in the fourth year. Firefighters have a step-raise program with an average of $40,000 a year.

“We understand the position of the city,” said Mike Unrue, Sharon Professional Firefighters Union.