West Pittston officials implement 63 percent tax increase [The Citizens' Voice, Wilkes-Barre, Pa.] - Insurance News | InsuranceNewsNet

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December 28, 2012 Newswires
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West Pittston officials implement 63 percent tax increase [The Citizens’ Voice, Wilkes-Barre, Pa.]

Elizabeth Skrapits, The Citizens' Voice, Wilkes-Barre, Pa.
By Elizabeth Skrapits, The Citizens' Voice, Wilkes-Barre, Pa.
McClatchy-Tribune Information Services

Dec. 28--WEST PITTSTON -- With the borough in precarious financial condition due to last year's catastrophic flooding, council voted at a special meeting Thursday to significantly raise property taxes.

The tax rate will go from 1.5192 mills to 2.4762 mills, which council President Barry Hosier said will mean an average increase of $75 to $100 per household. A mill is $1 on every $1,000 of assessed value.

In addition, residents recently learned they will have to pay $50 extra for federally backed flood insurance because deficiencies in West Pittston's flood management plan weren't remedied by the Dec. 1 deadline and the Federal Emergency Management Agency put the borough on probation.

Borough officials blame the Sept. 8-9, 2011, Tropical Storm Lee flood that devastated neighborhoods near the Susquehanna River for the state of West Pittston's finances. Beside the flood-related expenses, the borough lost residents and therefore lost property and wage taxes. And the borough depleted what little "slush fund" it had.

"People don't know what this flood did to us," Hosier said.

He said borough officials didn't want to raise taxes, but had no choice in order to balance the $1.64 million budget for 2013.

West Pittston's misfortune continued this week when, as the region experienced its first measurable snowstorm Wednesday, both of the borough's snow plows/salt spreaders broke. Borough officials had to hire private contractors to salt and cinder the streets, Hosier said. He hopes at least one of the trucks will be operational by the weekend.

On a more positive note, the borough doesn't have to worry about paying back a short-term loan before the Dec. 31 deadline.

Council voted at a special meeting on Sept. 20 to borrow $2.56 million from the Pennsylvania Department of Transportation to pay contractors who cleaned up the debris after the flood. Hosier said Wednesday that reimbursement money from FEMA and the Pennsylvania Emergency Management Agency arrived and the loan was repaid.

Council also voted Wednesday to apply for $450,000 in state gaming funds on behalf of the United Neighborhood Association and $300,000 for Crown Display Manufacturing. Both organizations will pay all costs associated with the grant application process.

The United Neighborhood Association intends to remodel the old school at 311-313 Luzerne Ave. into 22 apartments, similar to what the organization did with the former Hitchner Biscuit Co. factory on Exeter Avenue, Hosier said. Crown Display Manufacturing, located on Ann Street, wants the money to expand operations and create 12 to 15 new jobs.

[email protected], 570-821-2072

___

(c)2012 The Citizens' Voice (Wilkes-Barre, Pa.)

Visit The Citizens' Voice (Wilkes-Barre, Pa.) at citizensvoice.com

Distributed by MCT Information Services

Wordcount:  433

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