Tax hike likely for Connellsville property owners

Nov. 26--Connellsville may have a proposed balanced budget for Wednesday's council meeting, but a property tax increase is likely.

Councilman Brad Geyer, Councilman Tom Karpiak, Councilwoman Marilyn Weaver, Connellsville City Treasurer Judy Keller, Mayor Charles Matthews and Mayor-elect Greg Lincoln met in council chambers on Monday night for the fourth time to go over adjustments to the 2014 budget.

The general agreement was that, for the first time in 25 years, property owners will face a tax increase.

Under Act 511 taxes, Geyer said he had slightly increased income from earned income tax to $490,000, the mercantile business privilege tax to $175,000, the occupational privilege tax to $135,000, and slightly decreased the income from the mechanical devices tax to $15,000. He said the changes reflected a more realistic forecast for those items.

Under licenses and permits, he allowed a change under vendors licenses down to $14,000.

Under fines and forfeits, he decreased the city allocation-state violations to $17,000 and local violations (police and code) to $80,000.

Under departmental earnings, he said maps, letters, reports, copies, etc. was changed to $6,500. Under miscellaneous revenues, park usage fees were reduced to $2,000, and under other financing sources, the line for a tax anticipation loan was reduced to $0.00.

Total income was $2,942,380.33

Under expenses, the retirement of city bookkeeper Dorothy Fosbrink would mean a reduction in the bookkeeper's salary in February. A small amount was kept in the line so she could train a replacement. The FICA contribution for the post was reduced to $6,281.38.

Under public buildings, the utilities line was reduced to $38,000 and the utilities for the parks department and facilities was lowered to $9,000.

Under the police department, the cost of the call system was reduced to $10,000 and the radio system was cut to $4,000, based on 2013 expenses. The capital outlay line was also reduced to $0.00.

Under miscellaneous, the group insurance line was reduced to $386,880.06 and the fire, theft and liability was dropped to $93,882. A line called the sinking fund, which was changed to $39,882, drew comments about what it was, while the line for tax anticipation loan interest had been reduced to $6,600, reflecting the action of the city if council decides on taking out a long-term loan.

Total expenses in the proposed budget were $2,936,449.84.

The proposed budget as presented last evening showed a slight surplus of $5,930.49.

Lincoln said some of that surplus should be shifted to the police department budget for the purchase or lease of a new patrol car.

Geyer said he would have the changes made and the budget ready for Wednesday's council meeting.

Keller questioned Geyer about when the final proposal would be presented to council members.

Geyer replied, that would be done when the final changes were made.

"When," Keller asked.

"When the changes are done," Geyer replied. "I'm not trying to hide anything, Judy."

Keller said she thought council members should have time to go back over the budget, not half-an-hour or 15 minutes before Wednesday's meeting.

Exactly how much of a property tax increase will be necessary and whether the increase should be broken down into small increases spread out over several years became the point of discussion after Geyer read the changes made in the proposed budget.

Geyer felt an increase of 0.5 percent could hold the city for another year.

"If we have a good year (and new business develops,) we might not need to increase taxes beyond that," he said.

One development Geyer referred to was the construction of a new hotel on the city's West Side.

But Weaver and Lincoln said the hotel would probably not be completed in 2014 and should not be counted on.

"I'm in favor of at least a 1 1/2 percent (property tax) increase," Weaver said.

Lincoln pointed out there are many pressing problems the city must soon address, including the need to begin replacing the city's aging police cars, maintenance to City Hall and work on other city structures.

"Look at the room we are in," said Lincoln, referring to the cold temperature in the meeting room. "I like to be cool, but ... We just don't know what (2014) will bring."

Karpiak said the city must also begin paving streets before they deteriorate further. He added the city would have to deal with the higher costs of Obamacare if and when the national health care plan kicks in.

"It will be a drain on the whole country," he said. "If it does begin, a 2-mill increase will not pave one road."

Keller, as city treasurer, said the city could make it through the end of the year, but wondered how finances would make it until tax revenues began to show up in the middle of March.

Geyer, adding what the city has on hand and what is expected to come in over the next few months, said the city should have about $500,000.

Keller and Lincoln both questioned what would happen if, for example, the city was hit with high overtime costs and heavy expenses if the winter turned out to be a harsh one.

Matthews, who's term expires in December, said he thought the property tax levy should be increased from the present 6.66 percent to 7.5 percent.

Council will meet 7 p.m. Wednesday and will act on the budget and any property tax increase.

Karl Polacek is a staff writer for Trib Total Media. He can be reached at [email protected] or 724-626 Tax hike

likely for city property

owners-3538.

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